Feb. 9 (Bloomberg) -- OAO Rosneft, Russia’s biggest oil producer, headed for its longest losing streak since October in Moscow after Goldman Sachs Group Inc. joined Deutsche Bank AG and Troika Dialog downgraded the company to “hold” from “buy.”
The shares fell as much as 1.8 percent to 212.80 rubles at 12:57 p.m., the lowest level in almost six weeks, heading for a four-day decline of 8.9 percent.
Goldman Sachs cut state-run Rosneft to “neutral” from “buy” because of weak free cash flow and increasing capital expenditures, the bank said in a note today. The stock was cut to “hold” from “buy” at Troika and Deutsche Bank earlier this week.
Rosneft plans to invest $15.5 billion this year, including $8.6 billion in upstream spending, and high spending in the next three years may cut into cash distributions to shareholders, Moscow-based Troika said in a research note yesterday, citing a Rosneft meeting with analysts.
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