China Natural Gas "buy," target price raised - update

10/08/07 - Brean Murray, Carret & Co

NEW YORK, October 8 (newratings.com) - Analyst Julie Chen of Brean Murray maintains her "buy" rating on China Natural Gas Inc (CHNG). The target price has been raised from $8 to $10.

In a research note published this morning, the analyst mentions that the recent SEC 8-K filing indicates that the company is making an effort to remove any uncertainty related to its December 2005 reverse merger deal. The overall CNG macro environment in China appears positive, the analyst says. China Natural Gas’s newly launched LNG business has the potential to become the most rapidly growing unit of the company, with sustained cash flow generation, Brean Murray adds.