Repsol YPF (Repsol) is in talks to divest its stake in YPF, after a failed IPO attempt in November 2008. The company has indicated that there are many potential buyers eyeing YPF. Meanwhile, our fundamental outlook for Repsol remains unchanged. Therefore, although the target price does not support a HOLD at current price levels, we maintain our HOLD rating for the company's common stock over our investment horizon of 6-12 months. We will reassess our common stock rating for Repsol after the company announces its 2Q 09 results. As we now anticipate a positive currency impact on the ADR over the medium term, and even though our target price does not support a HOLD rating at current price levels, we upgrade our ADR rating from a SELL to a HOLD. We will reassess our ADR (1 ADR = 1 common share) rating for Repsol after the company announces its 2Q 09 results.

From September 2009, the Research Oracle will begin to accept research submissions from readers – whether amateur or professional analysts – from around the globe. To receive notification of the launch and rules, contributors may register now at
http://www.iirgroup.com/researchoracle/researchoracleaward