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Traders Shrug at JP Morgan's Ecopetrol Upgrade, Shares Modestly Lower

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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.

Posted-In: Analyst Color Upgrades Analyst Ratings

 

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