BNP lowers Cairn India to 'hold'; cuts target

[bingogo]

BNP Paribas has downgraded India's Cairn India to 'hold' from 'buy' and cut its price target to Rs 325 from Rs 347 owing to higher probability that the company will bear royalty and cess burden in its Rajasthan block.

"Despite assuming fairly high long-term and near-term crude prices, we see limited upside to Cairn India's share price," BNP said in a note. If the deal (with Vedanta) is approved in its current form, the minority shareholder treatment would come into light especially since the recent developments have materially altered their interests in the company, it added in the report.

At 12:05 p.m., the stock was at Rs 315, up 0.25 percent.