J.P. Morgan upgrades Oasis Petroleum, downgrades Whiting after oil rally

|By:, SA News Editor

Oasis Petroleum (OAS -5.1%) is upgraded to Overweight with a $9 price target, raised from $6, at J.P. Morgan, which believes OAS is well positioned operationally vs. peers and that the company’s enhanced completions in the Bakken generate top-tier returns.

The firm also downgrades Whiting Petroleum (WLL -10.7%) to Neutral from Overweight with an $8 price target, primarily to reflect valuation after shares have surged 140% from their late-February low.

J.P. Morgan favors companies that can sustain or quickly re-establish positive operating momentum as the industry begins fighting the decline curve; its top picks are Callon Petroleum (CPE -2.7%), Diamondback Energy (FANG -1%), Newfield Exploration (NFX -2.9%), Parsley Energy (PE -0.4%) and PDC Energy (PDCE -0.9%).

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