Research Today: PGAS upgrade Swati upgrades Perusahaan Gas (PGAS IJ) from UPF to BUY. Increased visibility prompts a return to DCF valuation of Rp3,200. Previous concerns about vol weakness are priced in and long term story is compelling. Please note that the DCF has not even taken into account other projects such as LNG, Duri-Medan, coal bed methane. Price assumption is conservative: we still assume no price increase next year and price increase assumption is very conservative despite price negotiation is likely to be B to B going forward.
