Goldman Sachs: Bullish on the super cycle of ultra-large crude carriers, COSCO Shipping Energy Transportation's (01138) target price raised by 81% to 29 Hong Kong dollars.

Goldman Sachs released a research report stating that they are optimistic about the super cycle of ultra-large oil tankers at present. They expect that the A-shares and H-shares of COSCO Shipping Energy Transportation (600026.SH and 01138) have an upward potential of 36% and 51% respectively, due to factors such as tight shipping capacity, oil inventory replenishment, trade diversion, and the significantly increased market concentration of ultra-large oil tankers which brings stronger pricing power. The bank has raised its forecast for the daily TCE freight rates for ultra-large oil tankers in 2026 from $80,000 to $150,000, and has increased the profit forecast for COSCO Shipping Energy Transportation in 2026 and 2027 by 81% and 59% respectively, to 13 billion yuan and 11 billion yuan, implying a return on equity of 23% and 19% respectively. The target price for the H-shares and A-shares of COSCO Shipping Energy Transportation has been raised by 81% and 78% respectively, to 29 Hong Kong dollars and 32 yuan, with a "buy" rating.