The Benchmark Company said they've maintained their "Hold" ratings on Royal Dutch Shell (NYSE:RDS-A) and Marathon Oil (NYSE:MRO).
For Shell, they based the decision on the "belief that the normalized earnings-multiple valuation currently in place is insufficiently excessive to warrant a more aggressively negative investment posture."
While they don't have a formal price target on Shell, they said they felt on a sector average normalized earnings multiple, fair value would probably be from $51 to $53 a share for the ADR.
Citing valuation challenges, the "Hold" rating on Marathon was reiterated, although Benchmark stated that against "a 'peer' group, which we readily acknowledge may not be applicable, the stock is trading at a sizable 40% normalized earnings-multiple discount."
Showing posts with label Benchmark Company. Show all posts
Showing posts with label Benchmark Company. Show all posts
Wednesday, September 8, 2010
Chevron (NYSE:CVX), Total ((NYSE:TOT) Target Prices Lowered by The Benchmark Company
The Benchmark Company said they're lowering their target prices on Chevron (NYSE:CVX) and Total (NYSE:TOT), based on the "weakness in the overall equity market," along with a "gas-price-related reduction in" their "normalized liquid-natural-gas earnings estimate."
Chevron's price target was dropped from $98 to $94 a share, and Total's target price was lowered from $68.74 a share to $58.55 a share.
Benchmark maintained their "Buy" rating on Chevron, basing it on their "unchanged belief that the discounted normalized earnings-multiple valuation currently in place is unjustifiable given the superior strength and growth potential of the Company's robust and diversified upstream portfolio."
They also reiterated their "Buy" rating on Total, saying, "We reaffirm our Buy rating based upon our unchanged belief that the discounted normalized earnings-multiple valuation currently in place is unwarranted given the superior growth and return potential of the company's robust and highly diversified upstream portfolio."
Benchmark kept their "Market Weight" on the overall integrated major oil sector.
Chevron's price target was dropped from $98 to $94 a share, and Total's target price was lowered from $68.74 a share to $58.55 a share.
Benchmark maintained their "Buy" rating on Chevron, basing it on their "unchanged belief that the discounted normalized earnings-multiple valuation currently in place is unjustifiable given the superior strength and growth potential of the Company's robust and diversified upstream portfolio."
They also reiterated their "Buy" rating on Total, saying, "We reaffirm our Buy rating based upon our unchanged belief that the discounted normalized earnings-multiple valuation currently in place is unwarranted given the superior growth and return potential of the company's robust and highly diversified upstream portfolio."
Benchmark kept their "Market Weight" on the overall integrated major oil sector.
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