Goldman most bullish on Adnoc

dubai — Shareholders of Abu Dhabi’s government-controlled fuel retailer could see a 25 per cent gain on their investment within a year, according to analysts at Goldman Sachs Group Inc. who started coverage of the company with a buy rating.

Goldman Sachs led four banks that began rating Abu Dhabi National Oil for Distribution PJSC in the last two days, setting a price target of Dh3.31 (90 cents) a share. EFG-Hermes also started coverage with a buy and a price target of Dh3.20 a share. Morgan Stanley has an equal weight rating and a Dh2.95 target, while AlphaMena began coverage on Wednesday with an add recommendation and Dh2.79 target.

Abu Dhabi National Oil Co, the government-owned crude producer in the capital of the United Arab Emirates, raised about $850 million from selling a 10 per cent stake in the retail unit last month. It was the first IPO in Abu Dhabi in six years and came to market ahead of the planned shale of shares in oil giant Saudi Aramco. The world’s biggest exporter, officially named Saudi Arabian Oil Co, is set to list on the Riyadh stock exchange and potentially an international bourse this year in what could be the world’s biggest IPO. Adnoc sold shares in its retail unit at Dh2.50 each and the stock started trading on December 13. EFG-Hermes, Goldman and Morgan Stanley acted as joint bookrunners in the IPO.

After gaining 6 per cent last month, outperforming the Abu Dhabi exchange index, the momentum has faltered.

The stock is unchanged this year against a 5.2 per cent gain in the broader exchange. Adnoc Distribution closed 0.4 per cent higher, at Dh2.65 in Abu Dhabi. — Bloomberg