PetroChina

DJ MARKET TALK: ML Keeps Buy On PetroChina; Outlook Improving2007-5-25 12:28:00 p.m. HKT, DJN

1217 [Dow Jones] STOCK CALL: Merrill Lynch says PetroChina''s (0857.HK) improving operational outlook justifies Buy rating, keeps HK$12.80 target. Notes 4 catalysts: fast reserve growth from onshore China, strong growth in natural gas sales, pricing reforms of domestic oil and gas, overseas output likely to double in 5 years. Based on target price, total potential return over 29% (including 3.8% dividend yield); "it is looking much more attractive." Stock off 2.3% at HK$9.98.-0-