KOS - Kosmos Energy cut at BofA on valuation after strong rally

Kosmos Energy ( NYSE: KOS ) -6.3% in Tuesday's trading, after Bank of America downgraded shares to Neutral from Buy with a $9.60 price target, after rallying nearly 35% YTD and 65% during the past year.

"We continue to see the scale of Kosmos' gas resource base as practically unique amongst its E&P peers, but given the extent of recent share price performance, believe that much of this is priced in," BofA analyst Matthew Smith wrote.

The concept selection for Tortue Phase 2 "marks another long-awaited milestone which confirms another leg of the future LNG growth story," Smith said, and while "undoubtedly attractive,' the project economics are still uncertain with no refreshed cost or timetable estimates communicated.

Smith, which sees clarity on Tortue as likely still 12 months away and first gas not before 2026 at the earliest, still views Kosomos ( KOS ) "favorably but ultimately now less attractive than our Buy-rated peers."

Kosmos Energy ( KOS ) is "West Africa's pioneering oil and gas explorer," ZMK Capital writes in an analysis published on Seeking Alpha .

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