Petronet LNG Gains 2% After Jefferies Upgrades Target Price to Rs 280

Petronet LNG gained around 2 percent intraday on Monday as investors reacted to target price upgrade on the stock.

Jefferies placed its bet on the stock and maintained its buy call. It also raised its target price to Rs 280, implying 21 percent upside as of Friday’s closing price.

The global research firm said that the EPS could grow at a CAGR of 13 percent over FY17-21, while the utilization from its Kochi unit may rise to 11/29/39 percent in FY19/20/21.

The stock was in the news recently after it announced that it will partner with Japan's Mitsubishi and Sojitz Corp to set up Sri Lanka's first liquefied natural gas (LNG) terminal near Colombo. "Petronet will be the leader of the joint venture with the largest shareholding," the management had told reporters after the company's annual general meeting.

The stock gained about 4 percent in the past 15 days, while its three-day gain stood at 0.23 percent. At 10:27 hrs, Petronet LNG was quoting at Rs 234.70, up Rs 3.30, or 1.43 percent on the BSE. It touched an intraday high of Rs 235.45 and an intraday low of Rs 234.00.