Written by OSK Research
Thursday, 18 February 2010 08:46
KUALA LUMPUR: OSK Research believes Petronas Gas’ upcoming revision of gas processing and transmission agreement (GPTA) terms on April 1, 2010 may actually be positive for the company but in any case, it will not be worse than NPV-neutral.
It said on Thursday, Feb 18 that with capex looking to rise over the next five years and Petronas looking at enhancing efficiency in gas usage, it believes Petronas Gas will enjoy better revenue if it continues to improve its services.
"We raise our DCF-based fair value to RM10.77 and upgrade the stock to a Buy (at RM9.78) as Petronas Gas is the ideal candidate for a large cap defensive stock in an increasingly volatile market," it said.