Petronet LNG dn after Credit Suisse cuts rtg, price aim

​By a Staff Reporter: Petronet LNG dn after Credit Suisse cuts rtg, price aim

Shares of Petronet LNG fell over 1% today after brokerage firm Credit Suisse downgraded its rating on the stock to "neutral" from "outperform" and also cut its target price by 13% to 235 rupees.

At 1019 IST, the stock was down 1% at 218.65 rupees.

According to the brokerage house, Petronet LNG faces three main issues--lower utilisation, increasing competition from west-coast liquefied natural gas terminals, and higher capital expenditure intensity over the next four to five years.

The brokerage firm has cut its earnings-per-share estimate by 5-8% for 2022-2024 (Apr-Jun) to factor in lower utilisation at its Dahej terminal.

Valuations are reasonable, but the brokerage firm said it would be more confident when the imported liquefied natural gas prices correct which in turn will drive gas demand and utilisation higher.

Source : Eureka

Open Demat and Trading Account online please visit https://kyc.eurekasecurities.net/home/index/729​

or please call us at 9831200699