BUY PetroChina(857.HK) HKD 10.02 TP 12.80.

STOCK CALL: Merrill Lynch says PetroChina''s (0857.HK) improving operational outlook justifies Buy rating, keeps HK$12.80 target. Notes 4 catalysts:

1. fast reserve growth from onshore China,
2. strong growth in natural gas sales,
3. pricing reforms of domestic oil and gas,
4. overseas output likely to double in 5 years.

Based on target price, total potential return over 29% (including 3.8% dividend yield); "it is looking much more attractive."

You Will Never Regret buying into such a bluest of the blue chip. It is trading at the PE of about 10.6 X of 07EPS. Unbelievable!!! SHOW ME THE BUBLE!!!!!