We initiate our coverage on PV GAS (GAS VN) with a BUY rating and target price of VND117,700 implying a 18.8% upside by using a DCF (70%) and PE (30%) methodology. In DCF method, we calculate the fair value of VND122,500/share with implied long-term growth of 4.0%, and WACC of 11.5%. With PE method, our target price is based on an average 2023-25F P/E of 18x. GAS is our top pick in oil & gas sector thanks to strong growth potential based on the high demand for natural gas and LNG in Vietnam. The risks of GAS comprise a drop of oil prices and delaying projects.