Morgan Stanley says buy this dividend-paying ‘key beneficiary’ of rising oil prices

Skip Navigation Markets Business Investing Tech Politics Video Watchlist Investing Club PRO Livestream Menu Traders are hoping for a resolution in the Middle East, but hot oil prices are likely to be sticky – and that bodes well for Chord Energy, according to Morgan Stanley. The Dow Industrials were up more than 1,100 points at its session high on Tuesday as traders grew optimistic that an end may be in sight for the weekslong war between the U.S. and Iran. Just over the course of March, Brent crude oil futures surged more than 60% for their biggest monthly advance since 1988. West Texas Intermediate crude gained more than 51% this month. "Even with near-term resolution, prices are likely to stabilize above pre-conflict levels," wrote a team of Morgan Stanley analysts led by Devin McDermott in a Friday report. They cited the need to restock oil inventories as well as heightened concerns regarding geopolitical risk, supply security and spare capacity, which should prop up prices even as tensions ease. The firm sees West Texas Intermediate crude averaging about $80 a barrel in 2026 and $70 in 2027. Morgan Stanley lifted its forecast for WTI in 2028 and beyond to $70 a barrel, up from $65. Those higher energy prices are bad news for consumers, but they're a tailwind for select oil exploration and production companies, the analysts said. "Overall, our price targets are moving 21% higher for oil E & Ps and a much more modest +8% for gas," they said. …