MIDF Research downgrades PetChem to Sell, cuts target to RM4.77

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KUALA LUMPUR (Aug 10): MIDF Research has downgraded Petronas Chemicals Group Bhd (PetChem) to “Sell” with a lower target price of RM4.77 (from RM5.04) and said PetChem’s 2Q15 reported earnings remained flat at RM557m compared to 2Q14.

In a note today, the research house said drag in revenue and sales attributable to lower product average selling prices (ASP) despite higher volume sold

“Pressure on average selling prices persists in tandem with drop in crude oil and feedstock prices.

“Downgrade to Sell with revised target price of RM4.77 per share,” it said.