UBS lowers price targets of PetroChina, CNOOC
UBS has downward adjusted its target price of PetroChina to 13.80 HK dollars from 14.40 HK dollars, and that of CNOOC to 17.00 HK dollars from 18.60 dollars as the international crude price kept falling.
Considering PetroChina and CNOOC’s upstream sector would bring higher ROA and ROE, UBS rates the two at “buy,” but gives “neutral” rating on Sinopec with target at 8.30 HK dollars.
Besides, UBS believes PetroChina would be able to outperform the market with its high return from upstream business.
PetroChina A-share on Wednesday closed up 0.59 percent to 11. 97 yuan and its H-share ended down 6.52 percent to 6.45 HK dollars.
Sinopec A-share plunged 6.48 percent to 9.09 yuan and its H- share slashed 6.83 percent to 5.46 HK dollars at close.
CNOOC H-share closed down 6.28 percent to 6.72 HK dollars.
