[ET Net News Agency, 17 January 2020] Credit Suisse lifted its target price for
PetroChina (00857) to HK$4.2 from HK$3.7 and upgraded its rating to "neutral" from
"underperform".
The research house said the pipeline reform overhang that has been dragging on
PetroChina for the past three years is finally coming to an end, which could induce share
price upside in 2020 versus its current distressed valuation (0.5x P/B).
The National Pipeline Company was formally established and Credit Suisse expects details
to be announced in 2H 2020. It assumed PetroChina's pipeline assets to be spun off at 1x
P/B.
Credit Suisse raised its 2020-21 EPS forecasts by 11-23%, primarily due to moving its
"proforma" pipeline earnings to become effective in January-2021. (KL)