UBS Tops Up Oil Forecasts; Lifts Woodside to Buy — Market Talk

2231 GMT [Dow Jones] UBS is a little more bullish on near-term oil prices as the market rebalances. That offers a modest valuation top-up for Australian energy stocks and triggers a bump up in its stance on Woodside Petroleum (WPL.AU) to buy from neutral. The brokerage also lifts its call on Beach Energy (BPT.AU) to neutral from sell. UBS now expects Brent to average US$51/barrel in the second half of 2016, where it was previously forecasting US$46.50, and US$60 in 2017 rather than US$55. Its price target on Woodside climbs 6.9% to A$29.50. For Beach it rises 9.1% to A$0.60, and for Santos (STO.AU) the target increases 5.7% to A$4.60. (robb.stewart[a]wsj.com; Twitter: [a]RobbMStewart)

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