DBS: Raises target price of PETROCHINA (00857) to 8.8 Hong Kong dollars, slightly surpassing third-quarter performance expectations.

Standard Chartered released a research report stating that PETROCHINA (00857) performed slightly better than expected in the third quarter, with a year-on-year decrease in oil prices of about 15% but a pure profit decrease of only 3.9% year-on-year. The bank mentioned that PetroChina's business model is resilient, making it the preferred stock in the industry. They reiterated a "buy" rating, with a target price raised from HK$8.02 to HK$8.8. The bank expects that with oil prices at a healthy level of $65 per barrel and a recovery in the downstream sector, PetroChina's pure profit will remain stable, supporting dividend payouts. They estimate a dividend yield of 6% for the next two years.