Source: Wall Street News
Morgan Stanley raised CNPC's target price from 6.5 yuan to 7.3 yuan, and raised CNOOC's target price from HK$18.18 to HK$19.8.
On April 17, Morgan Stanley stated that the profit forecast and target price for CNPC and CNOOC were raised based on the latest predictions for crude oil prices in the recent geopolitical tension.
Morgan Stanley raised CNPC's net profit forecast for 2024-2026 by 2%-10%; under the benchmark scenario, the target price for A-shares was raised to RMB 7.3, compared to RMB 6.5; and the target price for H shares was raised to HK$7.9, compared to HK$7 previously.
At the same time, Morgan Stanley also raised CNOOC's 2024-2026 net profit forecast by 1%-4%, and raised its mid-term production forecast; under the benchmark scenario, the target price for Hong Kong stocks was raised to HK$19.8, compared to HK$18.18 previously.
Previously, Goldman Sachs was also optimistic about CNPC and CNOOC. Goldman Sachs pointed out in the research report that as oil prices maintain a long-term trend of 80 US dollars per barrel, the free cash flow yields of CNPC and CNOOC are 15% and 11%, respectively. It is expected that the discount price of these two stocks will narrow compared to the world. As cash flow is transformed into strong dividends and potential stock repurchase plans, Goldman Sachs is optimistic about the stock price performance of CNPC and CNOOC.
At the same time, Goldman Sachs raised the target price of “three barrels of oil.” Take CNPC as an example. The target price will be raised to HK$7.8 for Hong Kong stocks within the next year, and the target price for A-shares is $12.1, respectively. In the March 26 research report, Goldman Sachs just set the target prices for CNPC Hong Kong stocks and A-shares at HK$6.8 and HK$10.6.
Goldman Sachs also raised the target price of CNOOC's H shares from HK$14.9 to HK$22.00; the target prices for Sinopec's Hong Kong shares and A-shares were raised from HK$4.1 to HK$4.2 and RMB 4.8 to RMB 5.3, respectively.
Goldman Sachs said that if oil prices remain at $80 per barrel, CNPC will be an ideal choice for long-term investors, and this price level is expected to continue until 2025.
At a time when foreign-funded institutions are actively bullish, the “three barrels of oil” stock price has actually emerged from a strong market. As of press release, CNPC's H share price has risen 44% since this year, CNOOC has risen 45%, and Sinopec has risen 11%.
editor/tolk