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Fly News Breaks for August 18, 2015
STO, COP, TOT
Aug 18, 2015 | 08:12 EDT
Citi analysts Alastair Syme and Michael Alsford upgraded their rating on the Global Big Oil space and now recommend investors position "at least a benchmark-weight" in the group. The analysts, who had been multi-year cautious on the space, prefer Total (TOT), ConocoPhillips (COP) and Statoil (STO), which they call "self-helpers." The sector price-to-book ratio of 1.2 times is now below the Q1 of 2009 and Q4 of 1998 troughs, Syme and Alsford write. Cost-cutting and better capital allocation are key to restoring the industry's profitability, they believe.