Traders Shrug at JP Morgan's Ecopetrol Upgrade, Shares Modestly Lower
JP Morgan's Caio Carvalhal issued a note Tuesday boosting his investment rating on Ecopetrol (NYSE: EC) from Underweight to Neutral amid valuation and output growth.
Caio Carvalhal commented on Ecopetrol's "small premium to peers:" the stock currently trades at 9.2x his FY14 P/E estimate, notably above an 8x multiple for the company's international competitors.
Carvalhal is expecting Ecopetrol's production to grow 6.1 percent over 2012 to 2013; he sees 5 percent growth in production over 2014.
Shares of Ecopetrol are down about 0.5 percent on the NYSE despite the upgrade from Carvalhal.
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