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
"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; firstname.lastname@example.org)