Credit Suisse believes a more aggressive sales strategy in the fourth quarter has paid dividends for the company with an earnings upgrade bolstering confidence in its ability to deliver.
Pressure around the balance sheet has subsided, although the broker points out it has not disappeared.
Credit Suisse upgrades estimates for earnings per share by 10-15% and believes a re-rating is still warranted. Target rises to $4.50 from $3.70. Outperform maintained.
Target price is $4.50.Current Price is $3.70. Difference: $0.80 – (brackets indicate current price is over target). If OML meets the Credit Suisse target it will return approximately 18% (excluding dividends, fees and charges – negative figures indicate an expected loss).