JPMorgan rates Saudi Aramco stocks ‘overweight’ amid signs of geopolitical hobbles


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JPMorgan rates Saudi Aramco stocks ‘overweight’ amid signs of geopolitical hobbles

On Wednesday, the 15th of January 2020, the United States’ largest lender, JPMorgan Chase & Co., headquartered in the New York City, had rated the Saudi's state-owned oil giant, Aramco, ‘overweight’ with a price target of 37 Saudi Riyals ($9.86) per share, marking the first major brokerage across the globe to rate Saudi Aramco’s shares’ prices overweight.

However, the sixth-largest lender across the globe, JPMorgan, had also added despite an ‘overweight’ rating, the US brokerage had been witnessing that opportunities were unveiling for the Saudi energy giant to heighten up its $75 billion base dividend, which the Kingdom of Saudi Arabia’s energy mogul could be able to achieve only if the US crude futures’ prices remained above $60 per barrel.

If truth is to be told, given the extent of tumultuous tattering the major Gulf economies were experiencing over the recent past following an escalation of US-Iran tension, US crude futures’ prices would likely to go through an upward traction throughout the year, though amid a stringent US inventory build, a $60 per barrel above US crude futures’ prices on a persistent basis seemed to be a daydream, suggested analysts.

On top of that, as JPMorgan rated Saudi Aramco ‘Overweight,’ among other major brokerages, Goldman Sachs had rated the company ‘neutral’ with a price target of 41 Saudi Riyals per share, while Bank of American rated Aramco ‘neutral’ with a price target of 36 Saudi Riyals per share saying, “Aramco is unique.

In terms of quality of assets, scale and profitability it dwarfs just about any company globally. Yet, at current valuations, most of the outstanding fundamental factors are already priced in. ” Another major US brokerage, Citigroup had also rated the Saudi oil giant neutral earlier this week with a price target of 34.1 Saudi Riyals per share.