LONDON (ShareCast) - Shares in Tullow Oil led the way in the FTSE 100 Monday after Morgan Stanley raised its target price on the oil explorer and producer to 1,230p from 1,090p and kept its ‘overweight’ rating.

The revision came as Morgan reviewed UK explorers and producers, describing them as still attractive.

The rise in Tullow’s value was against the grain in the oil sector though, with most stocks down in line with lower oil prices.

BP and Shell fell as oil continued to sit just above the $125 a barrel mark, having topped $135 a barrel last week.

Edinburgh-based Cairn Energy was also lower despite Morgan raising its target price to 4,350p from 3,150p and keeping its overweight rating.

In the FTSE 250, Dana Petroleum, whose target price Morgan lifted to 2,360p from 1,920p while keeping its ‘overweight’ rating, was higher. It was also boosted by its confirmation of a significant gas discovery with its first exploration well in Egypt.

Premier Oil fell back though, even as Morgan raised its price target to 2,140p from 1,500p and kept its ‘overweight’ rating.

The review also encompassed smaller companies, with Morgan starting coverage of Oilexco with an overweight rating and a 1,140p price target saying the North Sea oil and gas explorer is likely to benefit from good news in coming months.

The broker cited short-term drilling in the UK and the likely valuation of the recently identified Huntingdon column in the North Sea in the second half of 2008.

Morgan also began coverage on the Middle East and Africa-focused explorer Addax with an ‘equal-weight’ rating and a 3,540p price target.

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