- Bank of America Merrill Lynch reiterated its Hess price target of $80, representing 60 percent upside from Monday's close.
- The firm predicts the company will increase oil and gas production by 15 percent in 2018.
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.