The share price of PTT Exploration and Production Public Company Limited (SET: PTTEP) rose 4.18% to THB149.50 in an early trading session on Friday on the back of a rebound in oil prices with Brent crude rose 2.26% to $109.05 per barrel and WTI gained 2.45% to $105.51 per barrel.
FSS International Investment Advisory (FSSIA) maintained BUY and raise its target price from THB162, based on 4.5x 2021 EV/EBITDA, to THB176, based on 5.0x 2022E EV/EBITDA, to reflect: 1) FSSIA’s EPS upgrades by 13-19% in 2022-24 to incorporate its 29- 33% higher oil price assumptions to USD100/90/90 per barrel in 2022-24; and 2) FSSIA’s valuation rollover to 2022. PTTEP remains FSSIA’s top pick in the upstream oil & gas sector based on the estimate that for every 1% change in the oil price its earnings should increase by 1.3-2.0%, depending on the oil volume sold. However, with its lower oil production proportion at 27% in 2022-23, FSSIA stated that it thinks PTTEP may be trading at a higher discount of 15-20% compared to its regional peers.
