JPMorgan first major brokerage to rate #Saudi Aramco 'overweight' - Reuters

JPMorgan first major brokerage to rate Saudi Aramco 'overweight' - Reuters:

JPMorgan (JPM.N) is the first major brokerage to initiate coverage of Saudi Aramco 2222.SE with an “overweight”, setting a price target of 37 riyals ($9.86) per share and saying it sees scope for an increase in the energy giant’s proposed $75 billion base dividend.

Goldman Sachs on Tuesday rated the company “neutral” with a price target of 41 riyals while HSBC on Wednesday initiated coverage of Aramco with a “hold” rating and a target of 36.80 riyals.

Bernstein and Jefferies both initiated coverage of Aramco last month with “underperform” ratings saying the company had been priced at a premium to international oil majors in its December IPO despite governance issues.

“Our bullish view is predicated on its dividend growth outlook, with scope to increase the $75 billion baseline as production scales up,” JPMorgan said in a note.