DBS Raises PETROCHINA (00857) Target Price to HK$8.8, Q3 Earnings Slightly Beat Expectations

Stock News
11/04

PETROCHINA (00857) reported slightly better-than-expected third-quarter earnings, with net profit declining only 3.9% year-on-year despite a roughly 15% drop in oil prices. DBS noted that the company's resilient business model makes it a top pick in the sector, maintaining a "Buy" rating and raising the target price from HK$8.02 to HK$8.8. The bank expects oil prices to remain healthy at around $65 per barrel, coupled with a recovery in downstream operations, which should stabilize PETROCHINA's net profit and support its dividend payouts. The estimated dividend yield for the next two years is projected at 6%.

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