Talos Energy initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of Talos Energy (TALO) with a Neutral rating and $12 price target Talos is a SMid-cap exploration and production company with a concentrated position in the U.S. Gulf of Mexico and offshore Mexico, the analyst tells investors in a research note. While “fans” of the business model, the firm says its Neutral stance on the stock is primarily due to a cautious outlook on oil fundamentals, which supports its below-consensus forecasts given the company’s “high oil torque.”