Barclays has upgraded Hurricane Energy PLC (LON:HUR) to ‘overweight’, despite a challenging outlook in the European exploration and production energy sector.

The broker expects the shares to do well as the AIM-listed oiler does not rely on a rising commodity price to support investment plans or bolster its share price valuation.

READ: Hurricane Energy spuds Warwick West well

Barclays‘ view on the sector as a whole was revised from ‘neutral’ to ‘positive’ as it predicts the Brent crude price will continue to oscillate around US$60 per barrel.

Hurricane’s shares dipped over the summer from a high of 60.8p at the end of May due to disappointing results at the Warwick Deep well, which did not flow at commercial rates.

The price regained momentum after production started at the Lincoln and Lancaster projects, bringing in the first revenues as seen in the half-year results published in September.

Reacting to the recent share price fall, Barclays’ price target has been reduced to 55p from 75p previously.

Shares were up 1.65% to 39.44p at noon.