Brent crude could remain elevated at around $80 a barrel over the next 12 months, even as oil supply recovers, according to analysts at JM Financial. The brokerage expects the higher crude-price environment to favour upstream producers Oil India and ONGC, while retaining a 'Reduce' rating on oil marketing companies (OMCs) on valuation and earnings concerns.
JM Financial analysts Dayanand Mittal, Shivam Gupta and Anupam Jakhotia have retained a Buy rating on both Oil India and ONGC, with target prices of Rs 560 and Rs 300, respectively. The analysts, meanwhile, have reaffirmed their 'Reduce' ratings on HPCL, BPCL and IOCL, with target prices of Rs 375, Rs 290 and Rs 135, respectively.
