Raise estimates and target price. Given the gas price rate hike, we raise earnings estimates by 22%/19% for FY11/12. We also
raise the target price to Rs1,440 from Rs1,200 and upgrade to Buy. Better late than never. The gas price hike comes three years after
the Tariff Commission’s recommendation. The surprise was the quantum – straight from US$2/mmbtu (Rs3,200/tcm) to US$4.2/mmbtu (Rs6,818/tcm). The new price is much higher than the Commission’s recommendation, but in line with RIL’s D6 price and has validity until end-FY14....

To read more you can refer to :
http://www.dsij.in/productattachment/BrokerRecommendation/ONGC.pdf

Source: Dalal Street Investment Journal
www.dsij.in