UBS trims near-term Brent oil price estimates for 2017-19. The new forecast is US$56/bbl in 2017, US$60/bbl in 2018 and US$65/bbl in 2019.
The broker observes oil prices in the June quarter to date have been weaker, despite declining global oil inventory and an extension to the OPEC production cuts.
Meanwhile, US shale productivity gains have been significant. The broker retains a Buy rating and reduces the target to $35.00 from $37.40.
Target price is $35.00.Current Price is $31.02. Difference: $3.98 – (brackets indicate current price is over target). If WPL meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).