[ET Net News Agency, 11 January 2018] Credit Suisse lifted its target price for Sinopec
(00386) to HK$8 from HK$7.2, and maintained its "outperform" rating.
The research house said Sinopec's Marketing divestment will return to focus again in
2018, where Credit Suisse expects the listing plan to be re-accelerated. This would be a
valuation crystallisation for Sinopec's crown jewel.
Credit Suisse forecasts US$60/bbl Brent in 2018, which is a goldilocks oil price
environment for Sinopec. Upstream no longer a drag and able to achieve breakeven.
Downstream earnings should remain robust. It updated its assumptions and its 2017-19 EPS
forecasts by 2-5%. (KL)