Kenanga initiates coverage on Petron Malaysia with 'market outperform'

KUALA LUMPUR: Kenanga Research has initiated coverage on Petron Malaysia Refining & Marketing Bhd with a “market perform” recommendation and target price of RM4.65.

“Our ascribed valuation is also broadly in line with some of its other listed refinery peers globally (e.g. TOA Oil, Phillips 66, HF Sinclair, Valero, Marathon Petroleum). Note that our target ‘price has taken into account our in-house ESG rating of two stars, which warrants a 5% discount to our initial valuations,” the research house said.