Petronas Chemicals Group Bhd's good 2nd quarter (Q2) earnings report failed to help the stock surge but analysts still support the counter.
It is understood that the company recorded a net profit of RM1.87 billion in Q2 ending June 30, 2022, but as of writing this news, its shares continued to shrink by 1.49% at RM8.57.
However, Kenanga Investment Bank's analysts in their note continue to voice their support for the company by maintaining the target price at RM11.
According to him, the results of the first half (H1 2022) of Petronas managed to meet the set projections when product prices recovered despite the increase in higher oil prices.
Those factors may be offset by lower plant utilization due to rehabilitation and maintenance activities.
Additionally, MIDF Research reiterated its positive outlook on the company's financial performance in 2022 in its note.
It is clear from the note that product prices will continue to be driven by rising energy prices and tight supplies.
Following that, the firm is seen not to change any earnings forecast by maintaining a 'buy' status at a target price of RM11.93.
