UPDATE: Citigroup Downgrades Ecopetrol to Sell on Yield Impact From Lower Oil
Citigroup lowers its rating on Ecopetrol (NYSE: EC) from Neutral to Sell, but raises its price target from $43 to $51.
Citigroup comments, "Downgrade to Sell, in spite of raising TP to $51/ADR and core NAV to $41/ADR — We see the stock trading not only at a large premium to its asset value, but now also to its peers on short-term earnings. Over the past 12-m the company has significantly outperformed the energy sector by 53% and crude by 61%, mainly driven by its dividend yield and “postponements” of Colombia's government equity offering plans."
EC closed at $58.53 on Thursday.
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