Energean Shares Cut to Underperform as Valuation Concerns Mount; Tullow Oil Upgraded

Jefferies issued contrasting calls on two London-listed energy groups on Wednesday, downgrading Energean (LON: ENOG) while lifting its stance on Tullow Oil (LON: TLW) as analysts reassessed valuations and commodity-price dynamics across the sector.

Energean was cut to Underperform from Hold, with Jefferies reducing its price target to 680 pence from 930 pence. The broker pointed to the company’s premium valuation, which it said no longer aligns with its risk profile.

The call follows a price-target cut from Berenberg last week, when the firm lowered its estimate to 780 pence and reiterated a Hold rating. Energean shares, down 3.7% year to date, trade around 857 pence.

Tullow Oil, meanwhile, was upgraded to Hold from Underperform, with Jefferies raising its price target to 7 pence from 6 pence.

Analysts cited the recent rebound in oil prices, which has improved near-term cash-flow expectations. Tullow shares have climbed more than 15% this year to 7.5 pence.

The move contrasts with a December downgrade from BofA Securities, which shifted Tullow to Underperform from Buy, warning that Ghana production guidance for 2026 raised doubts about the company’s ability to deleverage.

The bank said weaker output projections pushed its estimated free-cash-flow breakeven to about $80 a barrel, leaving it modeling negative free cash flow ahead of refinancing.