Citi Raises PETROCHINA TP to HKD12, Lifts FY2026 EPS Forecast by 26%

Citi raised PetroChina's target price to HKD12 and increased its FY2026 EPS forecast by 26%, citing favorable Brent crude oil assumptions, strong jet fuel margins offsetting domestic pressure, and improved natural gas competitiveness. The bank maintained PetroChina as its top pick in China's oil and gas sector, adjusting valuation models based on updated long-term oil price expectations.

Citi issued a report updating its model for PETROCHINA (00857.HK) +0.010 (+0.102%) Short selling $155.89M; Ratio 15.533% to reflect Citi's latest Brent crude oil assumptions of USD75, USD70 and USD65 per barrel for 3Q26/4Q26 and 2027, respectively.

Owing to the marked widening discount of Russian crude oil relative to other imported crude oil, as well as strong jet fuel crack spreads, Citi believed PETROCHINA can fully offset domestic gasoline and diesel margin pressure.

The competitiveness of its natural gas marketing business has also improved amid rising LNG prices. The stock remains Citi's top pick in China's oil and gas sector.

Citi raised its FY2026 EPS forecast for PETROCHINA by 26%, while keeping its FY2027 forecast broadly unchanged with only a 1% reduction. The update also introduced FY2028 forecasts.

Citi raised the TP from HKD10 to HKD12, mainly reflecting the revised DCF valuation for exploration and production operations, with the long-term Brent crude oil price assumption lifted to USD65 per barrel from the previous USD60 per barrel.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-28 16:25.)

The competitiveness of its natural gas marketing business has also improved amid rising LNG prices. The stock remains Citi's top pick in China's oil and gas sector.

Citi raised its FY2026 EPS forecast for PETROCHINA by 26%, while keeping its FY2027 forecast broadly unchanged with only a 1% reduction. The update also introduced FY2028 forecasts.