CLSA Asia Pacific Markets puts buy on Cairn India
CLSA Asia Pacific Markets has rated Cairn a “buy” citing attractive valuations and expectations of a rebound in crude oil prices
By ET Bureau |
Cairn India
cmp: Rs 129.20
target price: 290
CLSA Asia Pacific Markets has rated Cairn a ���buy��� citing attractive valuations and expectations of a rebound in crude oil prices. ���Cairn is discounting $35/barrel nominal Brent to perpetuity on our DCF (discounted cash flow) valuation models.
On a nearer term, the stock reacts more to spot crude but is now at $40/barrel on this regression,��� the French brokerage said in a client note. ���We do not see $30-40/barrel as sustainable despite a worsening global oil demand scenario given tight supply and rising costs of production; we model in $70-80/bbl Brent over 2009-10 ,��� it added.
cmp: Rs 129.20
target price: 290
CLSA Asia Pacific Markets has rated Cairn a ���buy��� citing attractive valuations and expectations of a rebound in crude oil prices. ���Cairn is discounting $35/barrel nominal Brent to perpetuity on our DCF (discounted cash flow) valuation models.
On a nearer term, the stock reacts more to spot crude but is now at $40/barrel on this regression,��� the French brokerage said in a client note. ���We do not see $30-40/barrel as sustainable despite a worsening global oil demand scenario given tight supply and rising costs of production; we model in $70-80/bbl Brent over 2009-10 ,��� it added.
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