Equity 14 January 2015, 9:43am

ANALYST VIEW - Nomura cuts target price, rating for Hungary's MOL

Portfolio

It was most likely the continued fall of oil prices that prompted Nomura’s London-based oil sector analysts to revise their outlook on MOL too. As a result, their target price for the Hungarian fuels group was lowered to HUF 10,500 from HUF 11,500 previously. As this is 9% below the current share price, the rating is ‘Reduce’.

Yet another target price cut for MOL

Nomura has on Wednesday cut its target price for Hungary’s MOL to HUF 10,500 from HUF 11,500 previously. Its recommendation is ‘Recue’ for the new TP is 9% below the current share price.

Nomura is not the only one that has recently turned less upbeat about the prospects of MOL. Goldman Sachs slashed its TP earlier this week by HUF 3,000, albeit the drastic cut was made from a previous target price of HUF 16,000. The rating was also changed ‘Neutral’ from ‘Buy’.

The rationale provided by GS was that its oil price estimate was greatly reduced both for this year and next. As a result, it cut its EPS estimate for MOL by 26% for 2015 and by 14% for 2016.

What’s the consensus now?

With its new TP Nomura joined the more bearish analysts covering MOL, as the median target price by Datastream is currently around HUF 13,800. The revision of target prices has been tracking nicely the drop in MOL’s share price, but the analysts still appear to be more upbeat than the market (share price is HUF 11,600).