Credit Suisse cuts ONGC to 'underperform' on earnings outlook

Cites rising risks to earnings in FY13 despite noting the stock continues to trade as a discount to global peers

Credit Suisse downgraded Oil and Natural Gas Corp to 'underperform' from 'neutral', citing rising risks to earnings in FY13 despite noting the stock continues to trade as a discount to global peers.

The investment bank said the state-run oil explorer's earnings in the next fiscal year could be hit by a combination of lower domestic production, higher taxes, losses at subsidiary Mangalore Refiney and Petrochemicals Ltd , and a high base in the previous fiscal year.

Credit Suisse also cut its target price to Rs 239 from Rs 315 in a note dated on Tuesday.

Shares in ONGC were down 0.3% at Rs 273.50 as of 10:50 am.