Reuters: Hot Stocks: STOCKS NEWS THAILAND-Thanachart lowers PTTEP target price

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STOCKS NEWS THAILAND-Thanachart lowers PTTEP target price May 2nd 2012, 05:39 Wed May 2, 2012 1:39am EDT Thanachart Securities lowered its target price on PTT Exploration and Production Pcl, Thailand's second-biggest energy firm by market value, to 175 baht ($5.69) from 176 baht ($5.72) and maintained its hold rating. PTTEP shares were trading up 0.56 percent at 179 baht, coming off an intraday high of 180.5 baht. The stock has gained 5.9 percent this year, underperforming broader market's 20.6 percent climb and a 10.6 percent rise in the energy subindex on concern about a possible capital increase to help fund a bid for Cove Energy. Royal Dutch Shell agreed in April to acquire Cove for $1.8 billion, raising its offer match a bid by PTTEP, which has said it is considering its options. "Although a capital increase may be delayed as the likelihood of a counterbid for Cove is minimal, the issue will remain as a share price overhang this year as the company seeks major acquisitions to meet its production target," the broker said in a report. "Despite a strong first quarter 2012 and an upgrade to earnings, we see no catalysts for the share price," it said. 1220 (0520 GMT) (Reporting by Viparat Jantraprap in Bangkok; editing by Richard Pullin; viparat.jantraprapaweth@thomsonreuters.com) ********************************************* 10:26 STOCKS NEWS THAILAND-Citi raises target price on Thai Oil Citigroup raised its target price on Thai Oil Pcl TOP.BK, Thailand's biggest oil refiner, to 78 baht ($2.54) from 75 baht ($2.44) and maintained its buy rating. The brokerage expected the earnings outlook for Thai Oil in 2012 to remain positive thanks to higher paraxylene output from August 2012 -- a completion of aromatics upgrading project, inventory gain, and corporate tax saving. Thai Oil shares were trading up 2.6 percent at 69.25 baht by 0325 GMT. They have gained around 18 percent so far this year. Thai Oil's valuation looked attractive at 8.7 times 2012 estimated price to earnings versus regional peer average of 11.3 times, Citigroup said. The refiner would also benefit from a lower corporate tax rate of 23 percent this year, compared with the normal 30 percent rate. "TOP has derated by 12 percent from its 2012 peak in February, partly reflecting its crude disadvantage versus Singapore gross refining margin (GRM). However, we believe near-term earnings should be largely supported by inventory gain and lower effective tax rate," the broker said in a report dated April 30. 1019 (0319 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Kim Coghill; viparat.jantraprapaweth@thomsonreuters.com) ($1 = 30.75 baht) Link this Share this Digg this Email Reprints

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