“We see MISC’s recent share price weakness as an accumulation opportunity for its solid operating cash flow growth of 10%-15% in the next two years, anchored by new asset additions and decent dividend yields, ” it said.
KUALA LUMPUR: RHB Research is retaining its Buy call on MISC with a lower target price (TP) of RM8.53 from RM8.91 earlier as it expects a weaker 2H20 due to a moderation of tanker rates.
In its research note, it said the lower TP was after reducing the petroleum segmental valuation to 1.3 times price-to-book value (P/BV) from 1.5 times to reflect weaker sentiment amidst a cautious outlook – this is more in line with industry peers.
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