[ET Net News Agency, 23 May 2018] UBS Global Research raised its target price for CNOOC
(00883) to HK$15 from HK$13.1, but downgraded its rating to "neutral" from "buy".
The research house said its investment case for CNOOC has been based on oil price
leverage, and strong reserves replacement potential.
CNOOC's share price is up 60% YoY and is returning to levels last seen when Brent was
near US$100/bbl. Investors are starting to price in a more confident view on oil prices
and confidence on CNOOC's reserves replacement potential.
UBS said the current tight global oil market conditions could present an upside risk to
near-term oil prices and this could act as a catalyst. (KL)