Talos Energy (TALO) Update - June 24

[dan_s]

From Stifel 6-24-2021

Talos Energy Inc. (TALO, $18.65, Buy; Target $17.00)
Reduction of Private Sponsor Position Improves Float - Michael S. Scialla
- TALO's top two inside holders plan to sell 5MM common shares, or ~7x the 90-day average trading volume, in a secondary public offering. While the sale could pressure the stock near-term following its recent strong performance, the offering will provide much-needed liquidity to a stock with a public float of only 34% float. The stock's lack of liquidity has contributed to its discounted valuation to peers, in our view. We are not surprised to see the two firms reduce their position after the shares recently reached a 16-month high. We view the news as neutral.

I do expect Michael to raise his price target after Talos releases strong Q2 results.