Talos Energy initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Neil Mehta initiated coverage of Talos Energy with a Buy rating and $14 price target. The analyst believes Talos represents a “unique opportunity for investors over the coming years,” with improving leverage to the oil demand strength through this decade, as an oily, scaling producer in the Gulf of Mexico. Goldman has a positive Gulf of Mexico outlook given the oily nature of the basin relative to the U.S. market and the low position on the U.S. oil cost curve, even in comparison to the Permian, the analyst tells investors in a research note.