KUALA LUMPUR: A sharp decline in the price of crude oil coupled with downward pressure on volume caused by the Covid-19 outbreak will weigh on Petronas Dagangan Bhd's earnings for the 2020 financial year, says Kenanga research.
"Post earnings revision, we cut our target price to RM21.35 from RM22.75 as we based it on -1.5SD 3-year moving average of 23.3x from -1.0SD 3-year moving average of 22.2x as the potential higher risk of MOPS trend could hit bottomline in the coming 1QFY20," it said in a note.
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