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NewsCIMB Research keeps Dialog as Outperform, ups TP to RM3.48
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CIMB Research keeps Dialog as Outperform, ups TP to RM3.48
by hlk Wed 17 Aug 2011, 18:39
KUALA LUMPUR: CIMB Equities Research is retaining its Outperform on DIALOG GROUP BHD [] and raised its sum-of-parts target price from RM3.21 to RM3.48 as it applies a 40% premium to the businesses that it previously valued at 20% premium over its 14.5 times target market P/E.
“This puts their valuations on par with those of larger oil & gas companies. Dialog remains an
Outperform, with the potential share price triggers being this contract and the US$20 billion Rapid project,” it said on Wednesday, Aug 17.
On Tuesday, Dialog and its partners Roc Oil and Petronas Carigali clinched a 15-year Petronas contract worth up to US$950 million to develop the Balai cluster fields.
“We are not surprised that Dialog has landed its first-ever upstream venture but are positively surprised by Petronas Carigali’s involvement in this 2-phase project,” it said.
CIMB Research said its forecasts are unchanged as it had imputed CONSTRUCTION [] contributions during the predevelopment phase.
“Commercial production will start 24 months after commencement, i.e. beyond our forecast period,” it said.
“This puts their valuations on par with those of larger oil & gas companies. Dialog remains an
Outperform, with the potential share price triggers being this contract and the US$20 billion Rapid project,” it said on Wednesday, Aug 17.
On Tuesday, Dialog and its partners Roc Oil and Petronas Carigali clinched a 15-year Petronas contract worth up to US$950 million to develop the Balai cluster fields.
“We are not surprised that Dialog has landed its first-ever upstream venture but are positively surprised by Petronas Carigali’s involvement in this 2-phase project,” it said.
CIMB Research said its forecasts are unchanged as it had imputed CONSTRUCTION [] contributions during the predevelopment phase.
“Commercial production will start 24 months after commencement, i.e. beyond our forecast period,” it said.
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