Following Goldman Sachs, Morgan Stanley also raised the target price for PetroChina and CNOOC
Morgan Stanley raised the target price for PetroChina and CNOOC, expecting oil prices to remain at around $80 per barrel in the long term, benefiting the stock prices of PetroChina and CNOOC. Goldman Sachs also has a positive outlook on PetroChina and CNOOC, and has raised their target prices. PetroChina's A-share stock price has risen by 51.12% so far this year, while CNOOC has risen by 41.01%
On April 17, Morgan Stanley stated that based on the latest forecast of crude oil prices under the recent geopolitical tensions, it has raised profit forecasts and target prices for PetroChina and CNOOC.
Morgan Stanley raised PetroChina's net profit forecast for 2024-2026 by 2%-10%; Under the base scenario, the target price for A-shares was raised to RMB 7.3, up from the previous RMB 6.5; the target price for H-shares was raised to HKD 7.9, up from the previous HKD 7.
At the same time, Morgan Stanley also raised CNOOC's net profit forecast for 2024-2026 by 1%-4%, and increased mid-term production forecasts; under the base scenario, the target price for Hong Kong stocks was raised to HKD 19.8, up from the previous HKD 18.18.
Previously, Goldman Sachs was also optimistic about PetroChina and CNOOC. Goldman Sachs pointed out in a research report that with oil prices staying at $80 per barrel for a longer period, PetroChina and CNOOC's free cash flow yields are 15% and 11% respectively. It is expected that the discount of these two stocks relative to the global average will narrow, and with cash flow turning into strong dividends and potential stock buyback plans, Goldman Sachs is bullish on the stock performance of PetroChina and CNOOC.
Goldman Sachs also raised the target prices of the "Three Oil Giants." Taking PetroChina as an example, the target price within the next year was raised to HKD 7.8 for Hong Kong stocks, and RMB 12.1 for A-shares. In a research report on March 26, Goldman Sachs had just set the target prices for PetroChina's Hong Kong and A-shares at HKD 6.8 and RMB 10.6.
Goldman Sachs also raised the target price of CNOOC's H-shares from HKD 14.9 to HKD 22.00; and raised the target prices of Sinopec's Hong Kong and A-shares from HKD 4.1 to HKD 4.2, and from RMB 4.8 to RMB 5.3.
Goldman Sachs stated that if oil prices remain at $80 per barrel, PetroChina will become an ideal choice for long-term investors, and this price level is expected to continue until 2025.
While foreign institutions are actively bullish, the stock prices of the "Three Oil Giants" have actually shown strong performance. As of the time of writing, PetroChina's A-share price has risen by 51.12% year-to-date, CNOOC has risen by 41.01%, and Sinopec has risen by 16.9%.