[ET Net News Agency, 8 October 2019] Daiwa Research raised its target price for
PetroChina (00857) to HK$5.75 from HK$4.8 and upgraded its rating from "outperform" to
"buy".
The research house said PetroChina's share price is down by 19%-to-date, or 36% in the
past year, due to concerns that the setting up of the National Oil & Gas Pipeline Company
(NOC) would affect PetroChina's OCF and FCF, as it would no longer have control over the
cash flow generated by its pipelines.
However, Daiwa believes the overhang will subside once the NOC is set up, likely this
month, and more clarity emerges. (KL)