UBS has upgraded its rating on oil and gas stocks Caltex (CTX) and Tap Oil (TAP) from Neutral to Buy

UBS has upgraded its rating on oil and gas stocks Caltex (CTX) and Tap Oil (TAP) from Neutral to Buy. The broker adjusted down the long-term Brent crude price forecast to US$92/bbl as well as the AUD to US92c. For CTX, the outlook for refining in the near-term is positive and expected to benefit from a lower AUD. Target price for CTX is $20.35 (currently:$18.33) with an 11% expected return. TAP has been upgraded based on potential exploration upside of its recently spudded, albeit risky, Starfish well in Ghana. Target price is $0.67 (currently:$0.52) with an expected return of 29%.