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Investing.com - Morgan Stanley (NYSE:MS) has upgraded PTT Global Chemical PCL (PTTGC:TB) from Equalweight to Overweight and raised its price target to THB26.00 from THB25.00.
The upgrade reflects Morgan Stanley’s view of recovering cycle multiples across key segments of the Thai petrochemical company. The firm applied higher EV/EBITDA multiples to PTTGC’s average 2026-27 segment EBITDA, compared to its previous 2025-26 estimates.
Morgan Stanley increased its target multiple for upstream/intermediates, polymers & chemicals, and performance chemicals to 8.5x from 7.0x previously. The bio-circularity segment received an 8.0x multiple, up from 7.0x.
The new valuation approach reflects "recovering cycle multiples to below mid-cycle earnings across key segments," according to Morgan Stanley’s analysis. The firm also applied mid-cycle P/E multiples for the contribution from associates.
Morgan Stanley’s price target calculation subtracts 2026 estimated net debt of THB173 billion, which the firm notes "reflects the new, lower normal in capex intensity" for PTT Global Chemical.
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