UBS has raised its raw oil price targets for 2008 to 2010 and has lifted its coverage in the oil sector. UBS also initiated coverage on some of the oil and drilling companies this morning. Here are a few of the stocks they initiated coverage on:
- Chevron (NYSE: CVX) raised to Buy from Neutral.
- Diamond Offshore (NYSE: DO) started as Buy with a $160 target.
- Hercules Offshore (NASDAQ: HERO) started as Neutral with a $35.00 price target.
- Noble Corp. (NYSE: NE) started as Buy with $81.00 target.
- Pride (NYSE: PDE) started as Neutral.
- Rowan (NYSE: RDC) started as Buy with $53.00 target.
- Transocean (NYSE: RIG) started as Buy with a $200 target.
As far as average oil price, UBS raised those as well:
- $115.00 average per barrel for 2008.
- $120.00 average per barrel for 2009.
- $116.50 average per barrel for 2010.
Jon C. Ogg
May 15, 2008