MIDF Raises Dialog's Target To MYR2.80; Stays Bullish

 MIDF raises Dialog's (7277.KU) target price to MYR2.80 from MYR2.45, and retains its Buy call; the higher target is driven by a change in valuation method to sum-of-parts from PE multiple, to better reflect the oil storage business' intrinsic value. 

Strong forecast FY12 EPS growth of 27.8% on-year "and potential earnings upgrade on marginal oil field venture (Balai Cluster), which we have not incorporated into our forecasts, also supports our recommendation," it adds. It notes the company's 1Q results were within its own expectations. The stock is up 1.3% at MYR2.43.