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PLC [BUY +24.7%] - We continue to bet on a rebound in asphalt demand in 2017 - Update

Company Research

13 Sep 2016

We raise our rating to BUY due to recent price declines. Infrastructure disbursement delays will weigh on 2016 earnings, but asphalt demand should pick up over the next six months, rejuvenating earnings from 2017 onward. PLC’s higher PER than its foreign peers may be partially justified by the expected recovery in Vietnam’s asphalt industry, which underpins our earnings growth forecast.
Tags: PLC

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