ONGC‘s share price was in the red on Friday morning going down around 1% to hit an intraday low of ₹325.90.

What Happened: Citi has maintained a “buy” rating on ONGC, raising the target price by around 18% to ₹370 from the previous ₹315. This adjustment reflects an increase in the core EBITDA multiple from approximately 4x to about 4.5x, which is a premium to ONGC’s historical mean. The analysts added that the decision to elevate the target price is based on an optimistic outlook for both oil and gas production as well as realisations.

See Also: Tata Technology Shares Under Pressure As Brokerages Cut Target Price After Q1 Results Miss Estimates

The brokearge house also revised the earnings projections for FY26, boosting them by 9%. This revision is driven by an expected increase of $4-$5 per barrel in gross and net oil price realisations. The valuation also takes into account the current market value of ONGC’s investments, marking a significant update from previous assessments.

Earlier in the month, domestic brokerage house Motilal Oswal also shared its bullish stance on the oil major. The brokerage maintained its “buy” call on ONGC with a target price of ₹330.

Price Action: ONGC’s share price was down 0.56% to trade at ₹329.85 shortly after market open on Friday.

Read Next: LIC, FIIs Raise Stake In RVNL In June Quarter

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.