Short-Term PetroChina Troubles Could Be Offset by Long-Term Gains
PetroChina (NYSE: PTR), China's leading natural-gas supplier, may experience some short-term setbacks, but is poised to gain in the long run.
PetroChina's shares fell in November after the Chinese State Council released a memo that companies should keep gas prices stable according to a Barron's report.
According to the report, "Bank of America-Merrill Lynch analyst Thomas Wong, who rates PetroChina's stock Neutral with a HK$10 price target, believes the State Council memo effectively rules out a gas price hike for at least six months."
Although the memo hurts PetroChina now, consultants feel PetroChina is still in the driver's seat to gain long-term. Barron's notes, "Industry consultancy Wood Mackenzie forecasts that, by 2030, China's annual gas consumption will grow to 444 billion cubic meters, almost four times the current level."
Bradley Way, A PNB Paribas analyst, goes on to say, "PetroChina's monopoly position in natural gas makes it his top pick among China's oil companies."
At last check, PTR is trading at $129.78.
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