Zacks Investment Research downgraded shares of PetroChina Company Limited – ADR (PTR) from OUTPERFORM to NEUTRAL on November 15, 2013, with a target price of $117.00.
We are downgrading our recommendation on PetroChina ADRs to Neutral from Outperform, reflecting a balanced risk/reward profile. Going forward, the main growth driver for PetroChina will likely be its leverage to the fast-growing Chinese market and the ever expanding market/resource base. Being one of two Chinese integrated oil companies, PetroChina is well-positioned to capitalize on the country's favorable trends. The Beijing-based integrated is also successfully expanding its footprint in strategic locations like Canada and Australia. However, we are concerned about prospects for the company's oil production growth, considering its heavy exposure to significantly mature-producing areas. Other near-term headwinds include limited international exposure and an ambitious investment program.
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