[ET Net News Agency, 17 November 2017] Citi Research said Sinopec (00386) has
underperformed its domestic rivals PetroChina (00857) and CNOOC (00883) amid recent oil
rally that sent oil breaking above US$60/bbl.
But the research house reminded investors that it underperforms as a low oil beta, but
the stock was actually off 15% from its March 2017 peak, against rising crude,
highlighting the overly bearish market sentiment towards Sinopec.
Citi expects Sinopec's marketing to turn around strongly in 4Q. With oil in the sweet
spot range of US$60-70/bbl for the company, Sinopec is well-positioned to spin loads of
cash and seemingly have no choice but to pay up the dividends, it added.
Citi maintained its conviction "buy" rating on Sinopec, with a target price of HK$7.1.
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00386 SINOPEC CORP
Nominal 
4.760 +0.170 (+3.704%) Others
17/11/2017 11:29
[I-bank focus]Citi sees good entry point to Sinopec (00386)
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