SINGAPORE, March 22: Merrill Lynch said on Wednesday it was initiating its coverage of shares of Pakistan Oilfields Limited with a “Buy” rating, and set a 12-month target of Rs694 ($11.55) for the stock. Pakistan Oilfields shares, which last traded at Rs589.95, are trading at a discount to regional peers and the company holds decent growth potential, the investment bank said in a research note.

“We forecast POL’s oil production to rise by 16pc over 2006-08, while gas production is expected to double. We see potential upside coming from future possible discoveries, further exploration into currently producing fields, and potential diversification strategy,” it said.—Reuters