Analysts at Credit Suisse Group led by Emerson Leite reinstated
coverage of Brazilian oil and gas producer OGX Petróleo e Gas SA
with a "neutral" recommendation and a 12-month price
target of 5.7 reais. Leite and his team wrote on Thursday that,
after two years of "exploration euphoria" following the
company's successful initial public offering in June 2008, "OGX
entered a 'development reality' phase since 2011: a report that
disappointed the market, production guidance reduction and
management changes all contributed to the share price being
close to all-time lows."
The prior rating was "outperform." In the opinion of Leite,
there are potential "catalysts" for movements in OGX's share
price, including the end of exploratory period for a series of
wells, a reserves report expected for mid-2013, better
production data - which makes him think that it is "risky to be
overweight ahead of the events."