BPCL is a safe bet: CLSA

CLSA has maintained its ‘Buy’ rating on BPCL and set a target of Rs750. Shell’s bid to acquire Cove Energy at $1.6 billion implies Rs275 a share in value for BPCL’s 10% stake in Mozambique — Rs125 a share higher than estimate.

The Shell bid, Brazil M&A benchmarks and Anadarko’s expectations for its Brazil asset divestments suggest upsides of Rs165-275/sh to CLSA’s current target of Rs 750 a share.