The target price for Rosneft shares has been raised by 18 percent to $ 7.8 per Global Depositary Receipt (GDR), after the revision, the recommendation for Rosneft was confirmed at Buy. Rosneft shares are included in the list of the most preferred investment targets. This follows from the published report of Gazprombank on the oil and gas sector of Russia.
Vostok Oil was valued at over $ 80 billion, which implies a significant rise in the stock. The bank believes that Rosneft’s market capitalization could more than double from current levels when the project is implemented.
“Our new target price for Rosneft of $ 7.8 per GDR implies upside potential of about 26 percent. We are assigning the company’s shares a” better than market “rating,” analysts emphasize.
Rosneft announced the Vostok Oil project, which envisages the creation of a new oil production cluster with an annual export volume of more than 100 million tons of oil along the Northern Sea Route in the 2030s.
Based on the parameters of the recent deal with Trafigura, which, according to media reports, acquired a 10% stake in the project, Vostok Oil could be valued at US $ 86 billion (100% of the share capital). This suggests that Rosneft’s market capitalization could more than double from current levels.