MS: CNOOC(0883.HK) TP HK$9.20

STOCK CALL: Morgan Stanley starts CNOOC (0883.HK) at Equal-Weight, with 12-month target price of HK$9.20. Says CNOOC now trading at 14X 2007 P/E and 7.5X EV/EBITDA, which at high end of its historical range. However, compared to its Chinese peers, CNOOC's valuation premium has significantly narrowed vs historical levels. "Overall, we view CNOOC's valuations as undemanding." Stock +1.4% at HK$8.42.