More bad news for Hungary's MOL

Another analyst house has lowered its target price for MOL. This time it was Wood that cuts its fair value estimate to HUF 11,000 from HUF 12,100. Its recommendation is ‘Sell’.

The move come on the back of similar action by other investments banks. Goldman Sachs has recently slashed its TP to HUF 13,000 from HUF 16,000 and lowered its rating to ‘Neutral’ from ‘Buy’. Its rationale was that its oil price estimate has worsened significantly both for this year and next, as a consequence of which it lowered its earnings per share (EPS) estimates for MOL by 26% for this year and by 14% for 2016.

Nomura has also revised its MOL model. It announced yesterday that it cut its TP to HUF 10,500 from HUF 11,500 previously. The new target price is 7% higher than MOL’s current share price therefore the rating is ‘Reduce’.

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