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Pro Analysis

Hess shares to rally 60% in the next year, Bank of America predicts

A Hess truck sits at a fueling station at the company's petroleum terminal in Bogota, N.J.
Emile Wamsteker | Bloomberg | Getty Images
A Hess truck sits at a fueling station at the company's petroleum terminal in Bogota, N.J.

Investors should buy Hess shares because its energy production levels will improve later this year, according to Bank of America Merrill Lynch, which reiterated its buy rating and added the company to the firm's US1 best ideas list.

"We believe the inflection point in Hess' investment case is just around the corner, with the broader sector pullback positioning the shares with amongst the highest upside in the sector as implied by our price objectives," analyst Doug Leggate wrote in a note to clients Tuesday. "We expect oil and gas production to trough in 2Q17 ... This is likely to kickstart an extended period of growth in 2018/19."

Hess has energy exploration and production operations in the U.S., North Sea, West Africa and Asia.