J.P. Morgan raised the target price of MIE Energy (1555.HK) from HK$3.20 to HK$4.60, maintaining the increase in holdings rating.

J.P. Morgan raised the stock's earnings forecast for 2011 from RMB 0.22 to RMB 0.32, and raised its forecast for the price of Brent crude oil from 80 US dollars to 110 US dollars per barrel. J.P. Morgan believes that the merger and acquisition of Emir Oil will increase production, thereby increasing profits, so the valuation of MIE Energy is still attractive among Chinese energy stocks.

MIE Energy declined 4.77% throughout the day to close at HK$4.19.