 "Deutsche Bank downgrades Cairn India on rising oil prices")
Deutsche Bank has downgraded Cairn India to ‘hold’ from ‘buy’ as the stock now factors in Brent price of $110 per barrel and USD/INR rate of 53.
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The bank said in a note that “an investor would either need oil price to stay above US$110/bbl and USD/INR above 53 over at least the next ten years, or (Cairn India) to produce significantly more than 1 billion barrels from its Rajasthan block to enjoy upside from current levels.”
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The bank has raised the target price for Cairn India to Rs 350 from Rs 330 mainly on an assumptoipon of higher exchange rate.
At 1:36 p.m, shares in the company were down 1.02 percent at Rs 333.25.
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