India's Petronet LNG falls as Jefferies flags earnings headwinds
BUZZ-India's Petronet LNG falls as Jefferies flags earnings headwinds ** Shares of India's Petronet LNG PLNG.NS fall as much as 2.2% to 283.45 rupees
** Jefferies maintains "underperform" rating and PT of 240 rupees, implying about 17.2% downside to stock's previous close of 289.85 rupees
** Says management is targeting 2.5-fold increase in profit after tax to 100 billion rupees ($1.04 billion) by FY31, driven by higher utilisation at Dahej and Kochi terminals
** However, Jefferies expects near-term earnings support from elevated LNG trading profits to fade if Middle East tensions ease, while rising capex could weigh on interest income from co's cash and investment balances
** Flags profitability concerns around Petronet's petrochemical project despite it remaining on track for FY29 completion
** PLNG rated "buy" on average by 30 analysts, median PT at 320 rupees -- LSEG compiled data
** YTD stock up 1.1%
($1 = 96.0500 Indian rupees)
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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