Talos Energy initiated with an Outperform at Mizuho

Mizuho initiated coverage of Talos Energy with an Outperform rating and $16 price target. The analyst believes the company’s strategic focus on balancing asset optimization, low-risk development and exploitation, and targeted high-impact exploration projects can provide “modest but steady” volume growth that, combined with the high oil mix and above-average EBITDA margin, result in a cash generation outlook that is underappreciated at current share levels.