KUALA LUMPUR (Apr 17): CIMB IB Research has upgraded Petronas Dagangan Bhd (PDB) to “Add” at RM26.08 with a higher target price of RM29.23 (from RM26.01) and said the expected 1Q19F commissioning of Petronas’s RAPID refinery will likely push up PDB’s volume growth and market share, especially in the commercial space.

In a note April 16, the research house said Petronas is evaluating strategic moves to export refined product volumes from RAPID that are in excess of domestic demand; this may involve PDB.

“We upgrade from Hold to Add, and raise our DDM-based target price (Ke: 5%) to RM29.23, as RAPID will push PDB’s volume growth higher from FY19F onwards.

“Potential re-rating catalyst: rising market share once RAPID refinery starts-up,” it said.