KUALA LUMPUR (April 6): CIMB IB Research has maintained its “Add” rating on Dialog Group Bhd at RM2.99 with a higher target price of RM4 (from RM3.15) after the Johor Mentri Besar yesterday officiated a ceremony to launch the land reclamation works for Phase 3 of the Pengerang Deepwater Terminal.

In a note today, the research house said this development has already been anticipated by the market, hence it makes no change to its Add call, but raise the SOP-based target price to RM4.

“This is because our earlier assumption was that Dialog would have a 25% stake in Phase 3, but quite likely, Dialog may have as high as 50% stake.

“Re-rating catalysts include Dialog’s expected multi-year growth in tankage capacity,” it said.