Morgan Stanley has announced it lowered its price targets on European refiners by an average of 6%, saying the 2006-2008 supply-demand outlook for refining had weakened over the past four months, Reuters reported on Wednesday.
The investment bank has said in a research note that though margin strength will continue, it now sees less risk of increases in refining margins in future years.
Combined with weak performance in recent results, the risks to earnings were now more finely balanced, it added.
Morgan Stanley said it retained its preference for Neste Oil due to its earnings growth in 2007 and bio-diesel programme, and Hungary's MOL for its cheap valuation and lack of government or family ownership.
The investment bank cut its price target on the following companies:
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