BROKER CALL - Hong Kong-listed CNOOC target price raised to 16.50 hkd
HONG KONG (XFN-ASIA) - JP Morgan raised its target price for CNOOC Ltd by 10 pct to 16.50 hkd while maintaining an "overweight" rating on the stock, factoring in higher earnings estimates for the upstream oil producer.
The new target price was calculated on the basis of an average realized oil price of 90 usd per barrel this year.
The investment bank now forecasts earnings per share of 0.92 yuan in 2008 versus last year's actual 0.72.
CNOOC's first quarter data showed strong production and revenue growth, the US house said, noting a 5 pct year-on-year and 8 pct quarter-to-quarter growth in production.
"CNOOC is on track for a strong production growth year," it added, noting the oil producer also continued to perform on the exploration front during the first quarter.
At 2:31 pm, shares of CNOOC were flat at 14.34 hkd.