Phillip Securities recommends holding PTTEP shares with a 2026 target price of 140 baht, as Brent crude oil prices have rebounded by about 2% to stand above the 90 USD per barrel level following heightened tensions in the Middle East. The US attacked Iranian rocket bases in the Strait of Hormuz, and Iran retaliated by attacking a US air base in Jordan. In the short term, oil prices will be volatile and remain at high levels, but in the medium to long term, there are negative factors from Venezuelan oil supply, as the US has taken control of operations, leading to more oil entering the market. Although there is room for speculation in the short term, the long-term recommendation is to hold due to an attractive dividend yield of approximately 4-6% and continuous production capacity expansion. Recently, PTTEP signed a production sharing contract in the Thailand-Malaysia Joint Development Area, Block A-18-01, with a production capacity of 300-400 million cubic feet per day, which will support future performance.
PTT Exploration and Production Public Company LimitedMiddle East tensions boost oil prices, benefiting PTTEP's revenue outlook.
