Equity
Credit Suisse cuts Hungary MOL target price after ING and Deutsche Bank
"[...] as our MOL forecasts are additionally affected by lower 2006-07 refining margin assumptions, we have reduced our 12-month target price on the stock by about 4% (from HUF 30,679 to HUF 29,338 per share)," analysts Vadim Mitroshin and Lev Snykov said.
“Nevertheless, we maintain our Outperform rating on the stock, as we believe it remains fundamentally attractive, especially following its recent share price weakness," they added. The TP of Credit Suisse still means a 50% upside on MOL's current share price.
ING analyst András Zékány has upgraded MOL to ‘Buy' from ‘Hold', but reduced his target price to HUF 26,000 from HUF 28,500, citing higher taxes as the prime reason.
Deutsche Bank has lowered its TP on MOL to HUF 23,000 from HUF 24,000.
Last week, the Credit Suisse global oil and gas team reduced its oil and refined product price forecasts for the fourth quarter and the full year of 2006 to reflect more optimistic recent inventory dynamics as well as somewhat slower-than-expected global oil demand growth.
“Although we have reduced our 2006 Brent price forecast from USD 66.95/bbl to USD 64.93/bbl (that is, by USD 2.02/bbl), we have left our projections after 2006 unchanged (we assume the average Brent price of USD 63/bbl for 2007-09)," the analysts said.
They have also revised their forecasts for major EMEA oil and gas stocks that they cover.
“We have adjusted our 2006 Urals price forecast respectively keeping the same Brent-Urals differential assumption (USD 4.50/bbl). However, the negative impact on our forecasts stemming from lower 2006 crude and refined product price assumptions has been mitigated by higher domestic price assumptions, which we have increased from USD 36/bbl to USD 38/bbl for this year and from USD 33/bbl to USD 34/bbl for 2007."
“Nevertheless, we maintain our Outperform rating on the stock, as we believe it remains fundamentally attractive, especially following its recent share price weakness," they added. The TP of Credit Suisse still means a 50% upside on MOL's current share price.
ING analyst András Zékány has upgraded MOL to ‘Buy' from ‘Hold', but reduced his target price to HUF 26,000 from HUF 28,500, citing higher taxes as the prime reason.
Deutsche Bank has lowered its TP on MOL to HUF 23,000 from HUF 24,000.
Last week, the Credit Suisse global oil and gas team reduced its oil and refined product price forecasts for the fourth quarter and the full year of 2006 to reflect more optimistic recent inventory dynamics as well as somewhat slower-than-expected global oil demand growth.
“Although we have reduced our 2006 Brent price forecast from USD 66.95/bbl to USD 64.93/bbl (that is, by USD 2.02/bbl), we have left our projections after 2006 unchanged (we assume the average Brent price of USD 63/bbl for 2007-09)," the analysts said.
They have also revised their forecasts for major EMEA oil and gas stocks that they cover.
“We have adjusted our 2006 Urals price forecast respectively keeping the same Brent-Urals differential assumption (USD 4.50/bbl). However, the negative impact on our forecasts stemming from lower 2006 crude and refined product price assumptions has been mitigated by higher domestic price assumptions, which we have increased from USD 36/bbl to USD 38/bbl for this year and from USD 33/bbl to USD 34/bbl for 2007."
