AmInvestment Researchupgraded Petronas Gas (PGas) to a Buy from Hold with a higher sum-of -parts-based (SOP) fair value of RM21.30 a share from RM17.80 earlier.
KUALA LUMPUR: AmInvestment Research upgraded Petronas Gas (PGas) to a Buy from Hold with a higher sum-of -parts-based (SOP) fair value of RM21.30 a share from RM17.80 earlier.
It said on Friday at the new TP, this implies an FY20F PE of 20 times. This stems from lowering the group’s gas processing and transportation WACC to 7% from 8%, with the market return lowered from 10% to 8% and risk-free rate from 3% to 2.6%.
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