UPDATE: Deutsche Bank on Cobalt International Energy on Mixed Factors

In a report published Friday, Deutsche Bank analyst Ryan Todd reiterated a Buy rating on Cobalt International Energy (NYSE: CIE), but lowered the price target from $32.00 to $25.00.

In the report, Deutsche Bank noted, “In a fitting finish to what has been a difficult past 6 months, CIE unexpectedly reported a dry hole at US GoM prospect, Aegean. At this point, valuation has taken a back seat, as lack of confidence in the story, fund flows, year-end derisking, tax-loss selling, lack of catalysts and general frustration have the stock trading well below our $22/sh estimate of discovered resource ($15/sh of US GoM discovered resource). While valuation remains extremely attractive, we expect the stock to struggle in the near-term as the market wrestles with the value of discovered resource and potential paths to monetization, but see value for those able to withstand near-term volatility. Maintain Buy.”

Cobalt International Energy closed on Thursday at $14.84.