Morgan Stanley: Raises OOIL (00316) target price to 100 Hong Kong dollars and maintains a "underweight" rating.

Morgan Stanley released a research report stating that it has raised the target price of OOIL (00316) by 12.4%, from HK$89 to HK$100. The company maintains a "underweight" rating on the stock, primarily due to potential oversupply in the next 12-24 months. However, if the spot market shows strength in the next 1-2 months due to increased demand for US replenishment, Morgan Stanley believes there is short-term upside risk. Morgan Stanley raised earnings forecasts for OOIL for 2025 and 2026 by 13.2% and 11.1%, mainly reflecting changes in freight rates, volumes, and marine fuel forecasts. At the same time, introducing an earnings forecast of $1.23 for 2027. The changes in forecasts reflect the potential upside risk in the spot market due to the mismatch in supply and demand after easing tensions in US-China trade relations.