Kosmos initiated with a Neutral at Mizuho

Mizuho initiated coverage of Kosmos Energy with a Neutral rating and $5 price target. After years of outspending cash flow to invest in a number of large offshore projects, the narrative on Kosmos is shifting to the imminent free cash flow inflection, debt reduction and path to shareholder returns, the analyst tells investors in a research note. The firm likes “this rate-of-change story,” but believes the real de-leveraging and cash payout catalyst will likely require investors to wait until 2026. As synch, it prefers to wait for a better entry point or more operational visibility.