MISC Upgraded to Buy, Sees 22% Upside

AmBank Research has upgraded MISC Berhad to a “Buy” from “Hold,” raising its target price to RM9.40 from RM8.80, implying a total return of 22%. The upgrade is driven by stronger petroleum tanker rates, with FY26 spot rate assumptions raised by about 14%, lifting core earnings forecasts by 8–13% for FY26–28. AmBank noted that MISC’s petroleum segment is the key driver, with AET’s Atlantic Basin exposure providing leverage to higher spot rates and tonne-mile demand.

MISC

The research house highlighted that contract economics for QatarEnergy vessels remain intact despite recent force majeure declarations, ensuring charter payments are protected. MISC’s dividend yield of around 5% and free cash flow yield of 7–9% provide defensive support, while tanker upside offers growth optionality. “We see stronger earnings momentum with defensive income support,” AmBank said, projecting a three-year earnings CAGR of 12%.

#businessnews