Reuters: Hot Stocks: STOCKS NEWS THAILAND-Citi upgrades PTT Global Chemical citing low valuations

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STOCKS NEWS THAILAND-Citi upgrades PTT Global Chemical citing low valuations Oct 26th 2012, 04:02 Fri Oct 26, 2012 12:02am EDT Citigroup upgraded PTT Global Chemical Pcl to 'buy' from 'neutral' and raised its target price to 72 baht from 60 baht, citing low valuations and good near-term earnings outlook. PTTGC shares were down 1.3 percent to 58.25 baht. They fell 11.1 percent since mid August, underperforming a 2.4 percent loss of the energy sector, following a new gas contract with its parent PTT which resulted in higher gas costs. PTTGC's 2013 estimated P/E was at 8.4 times, representing 34 percent, 19 percent and 36 percent discounts to Asian chemical peers, Asian refining peers, and global chemical peers respectively, Citi said in a report dated Oct. 25. Near term catalysts for PTTGC included strong refinery margins and additional mono ethylene glycol (MEG) capacity, it said. "We still expect strong refining margins led by resilient middle distillate demand to support PTTGC's earnings in the next 6 months. Ethylene cycle should have bottomed out but meaningful recovery should arrive in the second half of 2013," it said. 1040 (0340 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Anupama Dwivedi; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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