Morgan Stanley begins coverage of QGEP’s shares with a buy recommendation

On December 5, yet another brokerage house began covering Queiroz Galvão Exploração, when Morgan Stanley issued a buy recommendation with an estimated end-of-2013 target price of R$16.10/share. It is less than two years since its IPO, but the Company is already covered by 17 renowned financial institutions.

In its report on QGEP3, Morgan Stanley declared that it chose QGEP because of its exemplary reputation in the E&P industry and the fact that its shares constituted a defensive position against the volatility of the oil and gas industry thanks to robust cash flow from the Manati Field.

In addition to production from Manati, the analysts also believe the share has an attractive upside and risk/return ratio, given the potential of the Carcará discovery, which may well be transforming for the Company, and short-term output from the Atlanta field in Block BS-4.

QGEP3 closed 12/12/12 at R$12.40, an upside of 30% in relation to Morgan Stanley’s target price.

Updated in  2014-01-09T11:50:16
All the dates of this page are presented in official timezone of Brasilia - Brazil.


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