Morgans observes the stock is trading at its deepest discount since 2007. This is considered unsustainable as it is below the value attributed to existing operations.

First quarter results were considered fair, given the current weak oil price. The broker considers Oil Search has adequate capital to sustain its business but falls short on growth funding without a turnaround in the oil price.

Add maintained. Target is raised to $3.55 from $3.53.

Sector: Energy.

Target price is $3.55.Current Price is $2.50. Difference: $1.05 - (brackets indicate current price is over target). If OSH meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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