June quarter production revealed rising oil prices that complemented the PNG LNG performance. Morgan Stanley notes Oil Search has guided to slightly higher operating costs.

The focus is now on engagement with the Santos ((STO)) merger offer. Outside of the merger, the broker is looking for updates on the Alaskan sales process and whether the company will now sell a larger stake, given the transition in CEO.

Equal-weight. Target is $4.50. Industry view: Attractive.

Sector: Energy.

Target price is $4.50.Current Price is $3.93. Difference: $0.57 - (brackets indicate current price is over target). If OSH meets the Morgan Stanley target it will return approximately 13% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena