Kenanga initiates coverage on Petron

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 for example TOA Oil, Phillips 66, HF Sinclair, Valero, Marathon Petroleum. “Note that our target price has taken into account our in-house environmental, social and governance or ESG rating of two stars, which warrants a 5% discount to our initial valuations,” the research house said.