Source - SMW
Barclays Capital has downgraded its investment rating on EnQuest (LON:ENQ) to 'underweight' from 'equal weight', stating that there may be pain before gain for the North Sea oiler until the oil price recovers.

The bank said: "Meanwhile the company's need for additional capital (and ongoing accommodations from its lenders) if oil prices remain $45-55/bbl through 2017 lead us to the conclusion that equity investors may face further pain before the company is optimally positioned to gain any of the potential upside that a rising oil price outlook can offer the North Sea developer."

Analysts have also cut their price target to 34 pence a share (from 44 pence), which it says is to reflect the potential dilution of the company's funding options.

At 3:29pm: (LON:ENQ) EnQuest Plc share price was -0.62p at 26.38p