[ET Net News Agency, 23 May 2018] UBS Global Research raised its target price for
PetroChina (00857)to HK$7.8 from HK$6.9, and retained its "buy" rating.
The research house said PetroChina's EPS disappointed in 1Q given weak E&P segment
performance, but it believes potential factors like the timing of certain costs, and sale
of crude inventory could explain why operations did not react as expected to rising oil
and gas prices.
UBS expects a strong recovery in 2Q. It estimated that the market has only priced in a
long-term Brent of US$60/bbl. It lifted its EPS estimates by 3% (2018), 8% (2019), and 12%
(2020). This is primarily to account for a reduction in our expectations for gas import
losses following PetroChina's efforts to stem losses. (KL)