The bank’s rating was retained as ‘overweight’ while a new target was set at 135p, down from 145p.
“We view Premier as an attractive option for investors seeking exposure to further improvement in medium-term oil prices,” Barclays analyst James Hosie said in a note.
He added: “Using our base oil price assumptions we forecast Premier can generate free cash flow of around $300m in 2018E, bringing its leverage ratio back below management's target of 2.5x ahead of schedule.”
Hosie forecasts Premier Oil’s cash flow rising to around US$470mln in 2019.
“Investors can anticipate a debt refinancing and possibly the reintroduction of shareholder returns alongside disciplined investment in opportunities to create further value,” Hosie added.