Mirae rates Cairn India buy, raises price target to Rs400
Mirae Asset Management has rated Cairn India a 'buy' and raised its price target to Rs400 from Rs374 citing better visibility in production growth.
MUMBAI: Mirae Asset Management has rated Cairn India a 'buy' and raised its price target to Rs400 from Rs374 citing better visibility in production growth.
""Cairn India remains our top pick in the Indian energy space for 2012 given its leverage to sustained high oil prices, a weaker Indian Rupee and its robust production growth,"" said Mirae's regional energy analysts Nipun Sharma and Gordon Kwan, in a note to clients on Tuesday.
Cairn shares were up 1.4% to Rs338.75 at 3:15 PM on Tuesday. The Nifty was up 2.2% at 4846.50.
""With joint venture partner ONGC and the Indian government now satisfied with the terms of the Rajasthan Production Sharing Contract (PSC), we have greater faith in the company's ability to meet its long-term production target of 240,000 bopd by FY14,"" the energy analysts. "" The stock could also be re-rated through further resource upgrades and greater exploration success beyond Rajasthan,"" they said.
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