Wednesday March 26, 03:10 PM
Talisman Energy shares rally after Citigroup upgrade
NEW YORK (Thomson Financial) - Shares of Talisman Energy (TLM.TO - news) rallied to a 3-week high following an upgrade by Citigroup (ASFZ.PK - news) , which expects the oil and gas exploration company to unveil a new strategy at its annual meeting in April.
Analyst Jeffrey Sprague lifted his rating on the stock to buy from hold, and his price target to C$21 from C$19.
Sprague thinks the new strategy, which he believes is already in motion, will involve the continued development around its core in Canada, South Asia and the North Sea and the shifting of its exploration focus towards exploiting resource plays.
'We think that the shares will respond positively as the new strategy could ultimately provide an improved risk profile and stability to the company's production, repairing the poor track record of the past few years,' Sprague said in a research note.
The stock was up 5.7% to C$17.71, the highest price seen since March 6. The U.S.-listed shares were up 6.2% at $17.43.
Tomi Kilgore
tk1
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