[ET Net News Agency, 7 April 2020] Morgan Stanley lifted its target price for
PetroChina (00857) to HK$2.82 from HK$2.49 and maintained its "equal-weight" rating.
The research house incorporated the 2019 actual results and roll over its earnings
estimates in 2020-22, which results in 12% upward earnings revisions in 2020 and 2021. It
also revised down its capex and production assumptions slightly in consideration of the
lower oil price.
Affected by the recent market downturn, Morgan said natural gas demand has slowed
significantly, which would harm PetroChina's gas business. Moreover, it would likely delay
the announcement of more details about the National Pipeline Company.
The current crude price, if it persists, is likely to hurt PetroChina's earnings given
the company's large E&P business. (KL)