[ET Net News Agency, 4 October 2018] UBS Global Research maintained its target price
for CNOOC (00883) at HK$16.6, but downgraded its rating to "neutral" from "buy" following
strong share price performance.
The research house said its investment case has been based on oil price leverage, and
strong reserves replacement potential. UBS said CNOOC's share price has rallied by 38%
year-to-date. This has mirrored a 40% rise in consensus EPS estimates (2019), outperformed
a 27% rally in Brent.
While the current US$85/bbl Brent crude oil price environment suggests upside risks to
consensus EPS estimates, UBS believes the share price may have already captured some of
the upside. (KL)