* ENI (OP, TP EUR15.50): Eni is transitioning rapidly and smoothly towards a leaner, less complex and more pureplay version of its former self. Unlike peers, it has optionality in its portfolio courtesy of its success with the drill bit. Many of these discoveries potentially sit on the lower end of the cost curve at high equity, which means that via farm-downs, developments can be even more capital light and its balance sheet more resilient, although we believe Eni's balance sheet is already among the strongest in the peer group. Unlike peers, however, its exposure to Non-OECD is high although this exposure is not a bad thing per se.
* CAIRN ENERGY (N, TP GBp190.0): Cairn's 2C contingent resource upgrade at SNE leads us to increase our base case resource estimate to 385mmbbls (from 330mmbbls). We increase our TP to 190p primarily as a result of these changes to our base case SNE model, including a higher 2C resource estimate, higher risk weighting (40% from 25%), and greater plateau production. We also include risked values for a potential 3C upside case at SNE, and the BEL-1 exploration prospect. Outside of Senegal, our Kraken NAV increases as a result of reduced development capex guidance
* ZODIAC (OP, TP EUR20.0): Sales decreased 1.8% organically in H1, with Q2 down 1.0%. As in Q1, the main drag has been production of bizjets and helicopters, in the context of slow commercial aircraft ramp-up. The revised outlook calls for a sharp revision of the next two years' expectations, starting with a flat 2015/16 guidance. We have cut by respectively 41%, 33% and 19% our operating income forecasts for 2015/16- 2017/18. The crtly depressed price and strong market positions of the group may indeed attract an acquirer, with the company stating on the call that it is the board's duty to consider any offer that may be made.