Berenberg initiates Galp with 'buy' on Namibia oil discovery
** Berenberg initiates Portuguese oil and gas company Galp Energia GALP.LS with a "buy" rating and a PT of 21 euros, citing the oil discovery offshore Namibia earlier this year
** It expects the discovery in the Mopane field to provide near-term catalysts such as appraisal drilling, and drive long-term growth in production, cash flow and shareholder returns
** The broker also highlights Galp's high-quality, low-cost production portfolio in Brazil, with stable cash flow to support its growth capex
** It adds Galp's integrated peers have generally reduced investments in their upstream portfolios recently, which in some cases has led to lower growth, higher costs and faster depletion of reserves
** "Galp's portfolio would be accretive on essentially all of these metrics, providing a potentially attractive inorganic solution to declining performance elsewhere," Berenberg says
** Out of 22 analysts that cover Galp, eight rate it "strong buy" or "buy", 12 "hold", and two "strong sell" or "sell" - LSEG
** Galp shares rise 2% to around 16 euros in morning trade
Reporting by Marta Serafinko
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