[ET Net News Agency, 16 November 2018] Morgan Stanley lowered its target price for
PetroChina (00857) to HK$6.46 from HK$8.07 and downgraded its rating to "equal-weight"
from "overweight".
Since the beginning of October, the Brent price has corrected by 21%, while the Big 3
have outperformed, with PetroChina leading the outperformance.
Despite positives from the gas business, Morgan believes a sharp crude oil price
correction could lead to a material earnings shortfall for PetroChina.
Applying a Brent oil price assumption of US$66.4/bbl in 2019, Morgan lowered its 2019
earnings estimate by 43% to Rmb42 bn, implying a 31% YoY decline. After the downward
revision, the stock will be trading at 22.1x 2019 P/E, which is less attractive than
Sinopec (00386) and CNOOC (00883). (KL)
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00857 PETROCHINA
Nominal 
5.860 +0.110 (+1.913%) Others
16/11/2018 17:41
[I-bank focus]Morgan lowers PetroChina (00857) to HK$6.46
| Remark: | Real time quote last updated: 20/09/2024 18:00 |
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