[ET Net News Agency, 14 January 2021] UBS Global Research raised its target price for
China Oilfield Services (COSL) (02883) to HK$9.8 from HK$7.8 and maintained its "buy"
rating.
The research house raised its 2021-23 EPS estimates by +21%, +15%, and +14%. It said
COSL remains one of UBS's top regional picks. UBS believes COSL is pricing in after-tax
ROIC (return on invested capital) of around 6%, consistent with near trough cycle
conditions and Brent in the range of US$52/bbl.
It believes the current valuation does not reflect the long-term benefits from
structurally rising well services margins offshore China nor long term consolidation in
global offshore rig fleets (ongoing rig retirements), which could help facilitate a
multi-year up-cycle in global utilization rates (from 2021) and day rates (from 2022).
(KL)
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02883 CHINA OILFIELD
Nominal 
6.820 +0.150 (+2.249%) Research Report
14/01/2021 10:26
{I-bank focus}UBS raises China Oilfield (02883) to HK$9.8
| Remark: | Real time quote last updated: 25/09/2024 18:00 |
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