JPMorgan upgraded COSCO SHIPPING ENERGY's A-shares from Neutral to Overweight due to a shift in valuation methodology from price-to-book (PB) ratio to price-to-earnings (PE) ratio, applying a target PE ratio of 15x for H-shares and 21x for A-shares. The upgrade was driven by three structural shocks—escalation of the Iran conflict, tightening of compliant capacity, and market consolidation—that have reset the profitability of Very Large Crude Carriers (VLCCs) to a higher level. Consequently, JPMorgan raised its target prices for COSCO SHIP ENGY's H- and A-shares significantly.
