Citi Raises Oil Price Forecasts - Upgrades Royal Dutch Shell and BP
RDS.A Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Citi upgrades RD Shell (NYSE: RDS.A) (NYSE: RDS.B) from Hold to Buy. Citi also upgrades BP (NYSE: BP) from Sell to Hold.
Citi analyst says, "We argue that any concerns over heightened cyclicality in oil should be outweighed by the positive benefits of the near-term earnings cycle. Prospects for further upgrades to consensus, which sits 20% below us in 2008, and for raised 2008 dividends due to windfall cashflows are strong. We would also begin to position for an excellent 2Q08 results season from the second half of July. To our existing Buys, StatoilHydro (NYSE: STO), Total (NYSE: TOT) and Eni (NYSE: E), we add RD Shell. We also upgrade BP from Sell to Hold."
Citi raises 2008E/09E oil prices to $117/bbl and $123/bbl respectively (+$27/bbl on average), and long-term forecast from $75/bbl to $100/bbl.
BP p.l.c. (BP) is a holding company. The Company three business segments: Exploration and Production, Refining and Marketing and Gas, Power and Renewables.
Royal Dutch Shell plc (Shell) is a holding company, which owns, directly or indirectly, investments in the numerous companies constituting the group.
Citi analyst says, "We argue that any concerns over heightened cyclicality in oil should be outweighed by the positive benefits of the near-term earnings cycle. Prospects for further upgrades to consensus, which sits 20% below us in 2008, and for raised 2008 dividends due to windfall cashflows are strong. We would also begin to position for an excellent 2Q08 results season from the second half of July. To our existing Buys, StatoilHydro (NYSE: STO), Total (NYSE: TOT) and Eni (NYSE: E), we add RD Shell. We also upgrade BP from Sell to Hold."
Citi raises 2008E/09E oil prices to $117/bbl and $123/bbl respectively (+$27/bbl on average), and long-term forecast from $75/bbl to $100/bbl.
BP p.l.c. (BP) is a holding company. The Company three business segments: Exploration and Production, Refining and Marketing and Gas, Power and Renewables.
Royal Dutch Shell plc (Shell) is a holding company, which owns, directly or indirectly, investments in the numerous companies constituting the group.
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