Renaissance Capital cut its price estimates for energy producers in Russian and other former Soviet republics by 35 percent on average after oil prices fell.
``The world has been too optimistic on crude demand growth,'' analysts including Alexander Burgansky and Elena Savchik said in a note to investors.
Moscow-based Renaissance lowered its 2009 forecast for average Brent crude prices by 26 percent to $70 a barrel, and its forecast for 2010 by 11 percent to $80 a barrel. Brent has fallen 20 percent this year to close at $72.30 yesterday, and reached a record $150 in July.
Renaissance slashed its 12-month target price for OAO Rosneft, Russia's largest oil producer, 45 percent to $8.60. Smaller rival OAO Lukoi was cut 39 percent to $95, while OAO Gazprom, the world's largest gas producer, was reduced 13 percent to $16.60. The investment bank reiterated ``buy'' recommendations on all three stocks.
To contact the reporter on this story: Greg Walters in Moscow email@example.com
To contact the editor responsible for this story: Guy Collins in London firstname.lastname@example.org