Ieba Trust previously had Petrom’s target price at RON0.48 a share.
The new target price is almost 62% above Petrom’s latest market price of RON0.278 a share.
“Despite concerns over a double-dip recession and falling oil prices, the upstream activity still supports solid numbers, cash flows and valuation for Petrom. We see Petrom undervalued and we maintain our buy rating,” the brokerage house said in a report.
Ieba Trust estimates Petrom’s earnings before interest and taxes will increase 64% on the year to RON553 million in the third quarter, on favorable crude oil prices.