STOCKS | Morgan Stanley Cuts CNOOC Services Target Price 12.1% To HK$8

Morgan Stanley cut its target price on CNOOC Services (02883) by 12.1% to HK$8 from HK$9.1 and kept an Equal Weight rating, according to ETNet. The broker said the company's second-quarter contract drilling business beat expectations, but its well services and marine business fell short. It also lowered its earnings forecasts after foreign exchange losses weighed on overall results. Morgan Stanley said CNOOC Services' contract drilling business remained stable and benefited from a high oil price environment, but weaker well services and marine operations left results below expectations. Based on financial performance in the first half of 2026, it cut its earnings forecast for the company by 5%. Looking ahead, the broker said oil prices may retreat next year, which could pressure drilling day rates and operating days. It therefore lowered its 2027 and 2028 earnings forecasts by 8% and 5%, respectively.