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.
Latest Ratings for EC
|Aug 2015||Deutsche Bank||Upgrades||Sell||Hold|
|Feb 2015||JP Morgan||Maintains||Underweight|
|Nov 2014||JP Morgan||Maintains||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.