Jefferies expects 47% upside for ONGC

(20 second reading) Global brokerage firm Jefferies has initiated coverage on the stock with a ‘Buy’ recommendation, saying reforms in crude and gas pricing have improved the company’s profitability above past decade averages.

Jefferies’ price target of ?390 per share on the ONGC stock implies a potential upside of nearly 47% over the next 12 months.

Augmented by profitable production growth over FY24-26, the foreign brokerage sees strong free cash flow (FCF) generation and consolidated net debt reduction.