Sinopec Relies on Chinese Market

Tags: snp
31 Dec 11:22pm
Posted by ZacksResearch
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We are maintaining our Hold recommendation on China Petroleum & Chemical Corp., or Sinopec (SNP) ADRs ahead of fourth-quarter results. While the stock has dropped in the current downturn, it still trades at a premium to its Chinese and other emerging market oil peers.

Sinopec's leverage to the lucrative Chinese market is expected to help sustain its growth momentum. But market-distorting fuel price caps and heavy taxes offset most, if not all, of the Chinese market positives, in our view.

Additionally, extent of the slowdown in the Chinese market, in response to the global economic weakness, still remains uncertain. Our target price is $62 per share.

Read the full analyst report on SNP




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