Here are the new price targets for the large integrated oils, as well as select refining companies. This information is fron Doug Terreson at Morgan Stanley.
MARATHON OIL CORPORATION (MRO.N):
What's Changed
Price Target: $75.00 to $85.00
Normalized EPS: From $5.20 To $5.75
2006E EPS: From $8.45 To $9.00
2007E EPS: From $7.75 To $8.50
CONOCOPHILLIPS (COP.N):
What's Changed
Mid-Cycle: From $5.65 To $5.75
2006E EPS: From $8.75 To $8.90
2007E EPS: From $8.55 To $8.60
AMERADA HESS CORP. (AHC.N):
What's Changed
Normalized EPS: From $15.50 To $15.75
2006E EPS: From $16.50 To $16.60
Morgan Stanley Global Energy Portfolio Contains our Top 10 Global Ideas. Morgan Stanleyç—´ Global Energy Portfolio represents our best ideas from around the world, with our chosen equities consistent with sector ratings. Portfolio includes: Integrated Oils: COP, XOM, MRO, WMB, PBR; Oil Service: SLB, TS;
E&P: TLM; and R&M: SUN, MOL.
Oilservice: Tenaris Swapped For Cooper Cameron
Overweight position in Oilfield Service remains. We are swapping Tenaris for Cooper Cameron, in that while the fundamental outlook is positive for both, Tenaris valuation is more attractive, in our opinion. We are capitalizing on the investment opportunity.
Integrated Oil: Marathon Swapped For Repsol
We are swapping Integrated Oil Marathon for Repsol today. Marathonç—´ growth and returns profile is improving, and we have increased our price target today to $85/sh.
Portfolio Remains Overweight Oilfield Service, R&M Consistent with Morgan Stanley sector calls across the globe our portfolio is Overweight the Oil Service and R&M groups. While Underweight Integrated Oils, we are positive on the sector, with an Attractive rating.
R&M: Outlook Remains Positive for 2006. Our 3 investment themes include: 1) Earnings projections must rise in 2006; 2) Mid-cycle earning and price objectives must also rise; 3) Higher normalized returns equals higher valuation in the equity market.
