Morgans continues to recommend caution in the oil & gas sector. Consensus forecasts still have oil prices 63% above spot, suggesting downgrades ahead. The broker has changed its valuation methodology to prioritise resilience over value and apply a gearing discount to target prices. The broker has cut its own 2020 Brent forecast by -39%.The broker describes Senex Energy's balance sheet as healthy. Target falls to 48c from 53c. Add retained.
Citi has revised down Brent oil forecasts significantly. The broker now expects US$30/bbl across 2020 and a trough of US$17/bbl in the second quarter.The bearish view is based on forecast for supply and demand amid an unprecedented build up in global inventory.Buy rating maintained. Target is reduced to $0.37 from $0.39.
SXY Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
