Wood and Company has announced it initiated coverage of OMV, Petrom, PGNiG and Rompetrol and revisited the MOL, Lotos,...Wood and Company has announced it initiated coverage of OMV, Petrom, PGNiG and Rompetrol and revisited the MOL, Lotos, PKN, and Unipetrol stories.
Analyst Bram Buring said MOL had the most potential to grow over the next five years in terms of capacity and earnings power. He added that in relative terms MOL should add the most of all of its peers in upstream, refining and retail. Buring said the next trigger for MOL would be a final decision from the Croatian government on the privatization of INA, in which MOL currently holds a 25 per cent stake but hopes to boost it to a majority holding. Buring has raised his target price for MOL to HUF 28,600 from HUF 27,400, which marks a 40 per cent upside. In the analysis issued on Wednesday, he maintained his recommendation at ‘Buy.
While all of the companies here are investing to maintain and improve their existing capacities, the companies that will invest the most on new capacities - whether they are upstream or downstream - should be the ones to deliver the most growth in the future, Buring said. “So investment into growth projects should be the main thing to watch for as growth, not efficiency per se, is still the reason for buying these companies."