Lehman Says No Oil Pullback, Upgrades Hess to Neutral

Lehman Brothers upgrades Hess (HES) from Underweight to EQUAL WEIGHT and raises target from $99/sh to $110/sh. The reason for the newfound ambivalence is two-fold:

1) The potential upside in Hess’s exploration projects has become clearer.

2) Lehman is convinced of the fundamentals behind the oil run-up:

…there is increasingly less likelihood of a pullback in oil prices and HES is one of the most oil price levered companies in our universe.

“Increasingly less likelihood”…famous last words. But, in any event, Hess should be making some mid-summer announcements about their exploration projects.

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