The Oil Search Ltd (ASX: OSH) share price has been outperforming the market in 2021.
Since the start of the year, the energy producer's shares have risen an impressive 20%.
This is double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.
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Could the Oil Search share price hit $5.00 by the end of the year?
Pleasingly for shareholders, one leading broker believes the Oil Search share price could keep rising from here.
According to a recent note out of Ord Minnett, its analysts have a buy rating and $5.20 price target on its shares.
Based on the current Oil Search share price of $4.52, this implies potential upside of 15% for investors before dividends.
Ord Minnett is also forecasting a dividend of 13.3 cents per share in FY 2022. If we add this into the equation, it will bring the total potential return to ~18%.
All in all, the broker clearly sees the potential for Oil Search shares to be trading at $5.00 or even higher by the end of the year.
Why is it positive on the company?
Ord Minnett has been pleased with the company's performance in FY 2021. Particularly with its earnings outperformance during the first half and its much stronger than expected free cash flow.
In addition, the broker is very positive on its proposed merger with fellow energy producer Santos Ltd (ASX: STO).
Its analysts think the merger is a good idea and expects it to create value for both sets of shareholders.
For this reason, Ord Minnett also has a buy rating on Santos shares with a price target of $8.05. In fact, Santos is the broker's top pick in the sector right now.
