CLSA slashed price target for GAIL to Rs 420 from Rs 465 earlier, but maintained buy call.
GAIL India shares fell 4.5 percent in morning on Friday after global research house feels upcoming quarterly results for the company may be quite weak.
The reason it cited for weak earnings expectations is the US LNG arbitrage which may stay negative through 2019.
Hence, CLSA slashed price target for GAIL to Rs 420 from Rs 465 earlier, but maintained buy call.
Futures trade suggest that US LNG will be at a significant premium to Asian spot LNG price, the research house said.
State-owned GAIL is the largest natural gas processing and distribution company in India.
At 09:56 hours IST, the stock was quoting at Rs 333.40, down Rs 15.45, or 4.43 percent on the BSE.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.