Zacks Investment Research downgraded shares of CNOOC Ltd. – ADR (CEO) from OUTPERFORM to NEUTRAL on April 16, 2013, with a target price of $182.00.
We are downgrading our recommendation on Chinese offshore pure play exploration and production company, CNOOC Ltd. to Neutral from Outperform. Although the company reported robust earnings results in 2012, the loss of production momentum and the absence of catalysts make us less bullish in the near term. Going forward, CNOOC's growth profile should get a boost over the next 3 to 5 years from numerous development projects offshore China, international growth from recent acquisitions, as well as intensive exploration and development programs with its partners. Finally the Feb acquisition of Canadian energy producer Nexen Inc. brought in to CNOOC's fold substantial reserves in the Canadian oil sands. However, a flattish production outlook for 2013 keeps us on the sidelines for the time being.
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