Canaccord Genuity has upgraded its recommendation on Cairn Energy (LON:CNE) to 'buy' from 'hold', saying that the stock is "strong on value".
Analyst Charlie Sharp added: "Cairn's current fortunes are not driven directly by the oil price, a result of its lack of production and still strong balance sheet.
"While this cannot protect its market performance if oil prices were to weaken further in the short run, it at least places the company in a more attractive position than many of its producing and leveraged peers under those macro conditions."
Canaccord has left its price target unchanged at 230 pence per share.
The shares are up almost 15 per cent since the beginning of the year, despite falling around 12 per cent in the past month.
At 2:24pm: (LON:CNE) Cairn Energy PLC share price was +2.35p at 179.95p