TEXACO <TX> RECOMMENDED BY FIRST BOSTON
First Boston Corp analyst William
Randol recommended the purchase of Texaco Inc today, saying
"the discount that investors have made in the share price to
reflect the ongoing litigation with Pennzoil has been overdone
relative to how we expect the case to conclude."
    Texaco's stock rose 1/8 to 34-1/8.
    On Monday, the stock tumbled four points after the Supreme
Court overturned a lower court decision that cut Texaco's bond
in the 10.3 billion dlr legal dispute with Pennzoil Co <PZL> to
one billion dlrs. Yesterday, a Texas court granted a temporary
injunction on the bond issue pending a hearing next week.
    The current litigation arose from Texaco's buyout of Getty
Oil Co in 1984. Pennzoil sued, arguing its earlier agreement to
buy Getty was binding. Two Texas state courts upheld Pennzoil's
position.
     Randol, noting that the stock has suffered a great deal in
the two years since the litigation was filed, said "we
recognize the legal problems but think investors have overdone
it."
    He said "the stock is selling at 48 pct of its asset value,
and we think it represents a good value at this level."
 Reuter
