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=MARKET BUZZ: CIMB Raises Malaysia's Petronas Dagangan To Add, Lifts Target

KUALA LUMPUR (Apr 17) -- CIMB Investment Bank raises Petronas Dagangan to Add from Hold, lifts target price to MYR29.23 from MYR26.01. Ups FY18-FY20 core earnings-per-share forecast by 10% on back of rising oil prices, which should result in lagged inventory gains. Brent crude prices hovering close to $72 on the ICE Exchange, near highest level in three-and-a-half years following U.S.-led strikes on Syria. Also, CIMB expects Petroliam Nasional, or Petronas’ recently-commissioned RAPID refinery to boost volume growth from FY19 onwards. Believes RAPID will help Dagangan deepen penetration in commercial market, as well as raise its share of domestic retail market for gasoline and diesel. Notes, Dagangan aims to increase its market share in jet fuel sales from FY19 onwards, partially displacing rivals Shell and Petron. Adds, Petronas could work with Dagangan if it builds or invests in overseas retail distribution network to sell RAPID output. Shares up 0.2% at MYR26.12.

- By Alexander Winifred;; +60320267363
- Edited By Abhrajit Gangopadhyay
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