STOCKS NEWS THAILAND-CIMB raises PTTGC, Thai Oil price targets after strong Q3
CIMB Research raised its price targets on PTT Global Chemical (PTTGC) to 82 baht from 77 baht and Thai Oil to 78 baht from 69 baht after the two companies posted solid third-quarter results.
PTTGC shares were up 1.2 percent at 62.5 baht while Thai Oil shares were up 0.37 percent at 68 baht.
"The solid 3Q12 core earnings despite weak petrochemical industry margin reflect PTTGC's core strength of gas-based olefin... PTTGC should see continued strong earnings in FY13 as volume rises," CIMB said in a report.
Improved earnings momentum and positive catalysts from capacity expansion would lead to the PTTGC stock's rerating over the next few quarters, it said. The research house rated PTTGC 'outperform' and maintained a 'neutral' rating on Thai Oil.
It said it liked PTTGC due to its strong and sustainable earnings growth outlook, while it was cautious on Thai Oil's earnings outlook.
"Thai Oil's high earnings volatility on cyclical GRM and unpredictable inventory impact would continue to put a discount on its valuation," it said.
PTTGC shares have risen 2.5 percent so far this year while Thai Oil shares have gained 16.2 percent. The energy subindex has gained 4 percent in 2012 while the SET index has risen 27 percent.
1040 (0340 GMT)
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(Reporting by Viparat Jantraprap in Bangkok; Editing by Subhranshu Sahu; email@example.com)
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