Rosneft Oil Co PJSC last = 421 RUB 1w: -43 (-9.3%)
% vs. spot / Price1M6M12MLT(2Y)LT(3Y)
Target Price (consensus)-0.7%-2.1%-8.5% (385.2)--
Upside (Bull Case)0.9%2.7%---
Downside (Bear Case)-1.5%-4.5%-18.2% (344.1--
[Negative]

Today, It was announced that Sberbank CIS has been hired (Andrey Gromadin, I would stress, he is from Rosneft) as a Head of Analyst Department for Oil and Gas Sector instead of that guy (Alexander Fak) who has been fired and who criticized investment projects of Rosneft and Gazprom that these investment projects are deeply unprofitable would deteriorate shareholders value… I guess that you all remember this story. Herein I am aligned with Fak’s reports over investments of Rosneft and Gazprom and I think that it is strongly biased towards quasi-government contractors…
Now I am expecting rather positive reports from Sberbank CIS on Rosneft and Gazprom and on all government linked oil and gas companies. I do not trust them.
You all should pay attention to the reports from Sberbank CIS, I mean that conflict of interest is in place.

[Neutral]

After the latest acquisition of Bashneft, Rosneft has become the world largest traded oil producer with strong growth prospects and forecast of increase in total output by ~30% by 2021. Also the access to gas exporting pipelines is a excellent opportunity for the future development of the Company. But in view of high sensitivity to oil prices and the RUB, high debt ratio and the US/EU sanction, my rating on Rosneft's shares is neutral.