Showing posts with label Cairn India. Show all posts
Showing posts with label Cairn India. Show all posts
Saturday, November 1, 2008
CLSA Asia Pacific Markets puts buy on Cairn India
1 Nov, 2008.
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.
Labels: Cairn India
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