Investment bank J.P. Morgan raised its target price for Rosneft shares by 17 percent to $8.8 per GDR as a result of revising the NPV of the “Vostok Oil” project. This is stated in the report of the investment bank.

In his research, J.P. Morgan compares Rosneft and Saudi Aramco. According to the bank’s experts, in 2021 the ratio of the growth potential of stock quotes and risks is better for Rosneft for a number of reasons. Firstly, the bank notes a favorable valuation of the share price – “Rosneft” is now trading at the level of the dividend yield estimate in 2021-2022 7.8-9.0 percent, with an average level of 5.7 percent in 2017-2019 compared to 4 percent for Saudi Aramco.

Additionally, the bank’s analysts admit the possibility of selling a stake in the “Vostok Oil” project to foreign partners. Experts also note that “Rosneft”, with an oil price of $60 per barrel, has a higher shareholder income than Saudi Aramco. If the price of oil rises to $80 per barrel, “Rosneft” will be able to generate 55 percent more free cash flow, Saudi Aramco – 32 percent, the bank said.