RBC slashes target price for Genel Energy on Mideast tensions
RBC Capital slashed its target price shares of Kurdistan-focused Genel Energy on the back of the heightened geopolitical tensions in the Middle East.
The military strike against Iranian commander Qasem Soleimani during the week before had resulted in a "significant" escalation in tensions in the Kurdistan.
Hence, they saw fit to raise their estimate of the weighted average cost of capital for all names operating in the region and told clients they also now expected a slower pace of activity on the part of those companies.
Their target price fell from 250.0p to 160.0p and their recommendation was downgraded from 'sector perform' to 'underperform'.