Listed gas monopolist PGNiG suffered a recommendation cut to 'sell' but its target price was hiked to PLN 4.70 from PLN 4.45 in a report by Wood & Co dated Jan. 29.

"The stock has literally exploded, rallying 40%+ in the past 3M," the report said. "While the Gazprom agreement has added some 10% value… the underlying businesses have seen no changes as to support such valuations."

"We do not foresee the gas market deregulation unlocking much of the value of the domestic gas reserves, as take-or-pay (TOP) losses may continue and hub prices (and the regulator) may keep Polish wholesale price increases at bay," it added.