The target price of Rosneft papers increased by 21 percent to 9.8 US dollars per GDR and company shares have a growth potential of 39 percent of current values. This follows from the report of the investment company ATON with the revision of the target prices for the oil and gas sector of Russia.
Athon admits that the addition of Rosneft shares in the list of the most preferred investment objects in December 2020 fully justified itself, since the company’s shares showed the most significant growth among the companies of the oil and gas sector of Russia.
According to the conclusions of the report authors, it is expected to continue the strong growth of Rosneft in 2021 due to a unique combination of production growth opportunities thanks to the project “East Oil” and dividend yield.
“Aton” evaluates the NPV “East Oil” at $ 69.7 billion on conservative macro-vehicles and so far adds only 25 percent of the project value in the Rosneft estimate (+1.6 dollars per GDR), but will be waiting for new transactions sale to improve the rating;
Rosneft dividends for 2020 were a pleasant surprise for the market. “ATON” expects a dividend yield of 9 percent for 2021 and 10 percent for 2022.
Aton expects the price of oil in the range of 60-70 dollars per barrel in 2021 with a long-term forecast of $ 60 per barrel. The peak of demand can be achieved in 2025-2030 in the amount of 103 million barrels per day. Restoration of the extraction of US shale companies will be slow to write off 300 billion dollars of assets (according to Deloitte) in 2020.