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<Research>CLSA: Top Pick PETROCHINA (00857.HK) Among 3 Oils w/ TP $8
Recommend 29 Positive 39 Negative 17 |
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The escalating tensions between Israel and Iran drove oil prices up to US$75 per barrel, yet oil companies' stock prices remained sluggish, reflecting the market's belief that there is no supply crisis, according to CLSA's research report. Initial information suggests the attacks have not damaged Iran's oil production or refining facilities, but the market is concerned about the situation in the Strait of Hormuz, as 20% of the world's oil is transported through it. Prior to the surge in oil prices, the global oil market was affected by negative news of accelerated output increases by OPEC+. At the current pace, the broker forecasted OPEC+ to complete output cuts by the end of the year, with the market estimating that oil prices will be US$50 per barrel in such an oversupply situation. Regarding stocks, CLSA noted that PETROCHINA (00857.HK) has outperformed SINOPEC CORP (00386.HK)/ CNOOC (00883.HK) by 26%/ 21% each over the past two months, and expected this trend to continue. Therefore, PETROCHINA is its top pick, with a target price of $8; followed by CNOOC with a target price of $23.1; and SINOPEC CORP with a target price of $4.6, all of which are rated at Outperform. AASTOCKS Financial News Website: www.aastocks.com |
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