Credit Suisse reveals energy stock picks, oil price outlook

RJ Sangosti | The Denver Post | Getty Images

Crews work at Anadarko’s centralized fracking facility and drill site near Fort Lupton, Colorado.

Credit Suisse initiated coverage on a slew of energy stocks Monday, telling investors it’s bullish on oil prices.

“We expect WTI to be in the $50-60 range for the next few years, but we believe the long-end of the oil futures curve is under-valued in the low-$50s,” explained Credit Suisse analyst William Featherston. “Oil-weighted exploration and production stocks are valued in-line with the back end of the futures curve and at a roughly 10 percent discount to our mid-cycle price; large cap exploration and production reflect a recovery in oil to the high-$50s.”

Featherston and his colleagues isolated their top picks in the energy space, rating the following three stocks at overweight.