Credit Suisse has downgraded its recommendation on Kazakhstan based oil producer Nostrum Oil & Gas (LON:NOG) to 'neutral' from 'outperform', stating that the stock is priced for perfect execution at GTU 3.
Specifically, the broker commented: "We remain confident Nostrum can grow production if it successfully executes its GTU 3 expansion, but the shares are no longer cheap when compared to our DCF based risked NAV, and imply 'perfect execution' at GTU 3, in our view."
It also pointed out that, since May, Nostrum's share price has risen by around 42% in GBp terms and by 22% in USD.
Analysts have increased their target price to 440 pence per share (from 415 pence).
At 2:25pm: (LON:NOG) Nostrum Oil Gas Plc share price was -0.5p at 427.75p