RHB Ups Dialog Group To MYR3.50 From MYR2.82

RHB Research raises Dialog Group's (7277.KU) target to MYR3.50 from MYR2.82 after the company says the Johor state government has given the go-ahead for it to begin reclamation work for its Pengerang deepwater terminal. Petronas' plan to develop a $20 billion oil complex at Pengerang will provide a long-term demand for Dialog's tank terminal and likely expedite its development. "Given Petronas' support, we have lowered our WACC rates for Dialog's three tank terminal projects to 9.75%-10.13% from 10.45%-10.9% previously," RHB says. It keeps Dialog at Outperform. The stock is down 1.4% at MYR2.76.