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Kosmos Energy (KOS) Misses Q3 Estimates, Analysts Split on Outlook

Kosmos Energy Ltd. (NYSE:KOS) is one of the cheap oil stocks under $10 to buy now. On December 5, Bank of America Securities analyst Matthew Smith cut his rating on Kosmos Energy Ltd. (NYSE:KOS) to Sell and set a price target of $1.

He said the move reflected a weaker outlook for Brent crude, which he expects to average $60 a barrel by 2026, along with lower production forecasts and doubts about the company’s ability to maintain steady cash flow. Smith also noted ongoing operational uncertainties and a heavy debt load of $2.9 billion compared with only about $500 million in equity, stressing that the company still lacks a clear plan to bring its debt down and faces serious challenges ahead.

Earlier on November 12, Benchmark’s Subash Chandra kept a Hold rating on Kosmos Energy Ltd. Just six days ago, on November 6, Goldman Sachs’s Neil Mehta had reiterated a similar rating on the stock and set the price target on the shares at $1.75.

Separately, Kosmos released its Q3 2025 earnings report on November 3, in which revenues totaled $311.23 million. This meant that the company’s performance missed analyst estimates, who were expecting at least $345.25 million. Management explained that they could not match the projection because of a net underlift position, which is to say that the actual oil lifted was below entitlement levels. This happened despite higher production volumes, as management explained during the earnings call.

Kosmos Energy Ltd. (NYSE:KOS) is a deepwater exploration and production company headquartered in Dallas, Texas. It focuses on the acquisition, development, and production of crude oil and natural gas, with its primary assets located offshore in Ghana, Equatorial Guinea, Mauritania, Senegal, and the Gulf of Mexico.

While we acknowledge the potential of Kosmos Energy Ltd. (NYSE:KOS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KOS and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 9 Best EV Charging Stocks to Buy Now and 11 Best Falling Stocks to Buy According to Wall Street Analysts.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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