CIMB Research maintains Outperform on Dialog, raises target price to RM3.46

CIMB Research maintains Outperform on Dialog, raises target price to RM3.46
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 06 September 2013 05:14

KUALA LUMPUR (Sept 6): CIMB Research has maintained its Outperform rating on DIALOG GROUP BHD [] at RM2.57 with a higher target price of RM3.46 (from RM3.34) after paying a second visit to Dialog's tank terminal project in Pengerang on Sept 4.

In a note Sept 5, CIMB Research analyst Norziana Mohd Inon said she came away impressed with the development that had taken place at the site.

“Phase 1 is scheduled to come onstream next year, putting Pengerang on the map as Asia's Rotterdam,” she added.

Norziana said her SOP-based target price rose as it was rolled forward.
“We now apply our CY15 target market P/E of 15.9x (15.6x CY14 P/E previously) and continue to value Dialog's businesses at a 40% premium, still within the historical P/E range for oil & gas big caps.
“Attractive prospects for Pengerang are potential catalysts that support our Outperform call,” she said.