Reuters: Hot Stocks: STOCKS NEWS THAILAND-PTT down after weak Q2

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STOCKS NEWS THAILAND-PTT down after weak Q2 Aug 14th 2012, 03:25 Mon Aug 13, 2012 11:25pm EDT Shares in PTT Pcl edged lower after the country's biggest energy firm reported a worse-than-expected quarterly net profit, raising concerns over a possible downgrade of earnings forecasts by analysts. PTT shares were down 0.6 percent at 340 baht. The stock had underperformed the wider stock market so far this year partly due to concerns over the impact of global oil price volatility on earnings. It was up 6.9 percent in 2012 compared with a 18.9 percent gain in the broader market. Despite the weak earnings, most analysts rated the stock a 'buy' due to expectations of an earnings recovery. Broker Citigroup said it maintained a 'buy' rating on the stock due to cheap valuation. "While likely facing an earnings downgrade wave, it is now trading at 1.2 times 2013 estimated price to book value with 16-17 percent returns on equity reflecting negative news mostly priced in," the broker said. "Upside could come from the government resuming its policy to raise domestic LPG and CNG prices higher to reflect PTT's gas feedstock cost," it said. Fifteen out of 20 analysts tracking the company rated the stock a 'buy' or 'strong' buy while five put a 'hold' rating. For the company statement and related story, click 1010 (0310 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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