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UOB Kay Hian, OCBC analysts find ThaiBev’s valuation attractive and undemanding amid 'solid' 3QFY2022 results

Bryan Wu
Bryan Wu8/29/2022 12:24 PM GMT+08  • 3 min read
UOB Kay Hian, OCBC analysts find ThaiBev’s valuation attractive and undemanding amid 'solid' 3QFY2022 results
ThaiBev's performance was driven by a stronger-than-expected recovery in the beer segment, although the spirits segment underperformed despite lower molasses costs, dragged down by rising packaging costs
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UOB Kay Hian analyst Llelleythan Tan has maintained his “buy” call for Thai Beverage (ThaiBev) with a lowered target price (TP) of 89 cents from 94 cents previously.

While Tan sees ThaiBev as an “attractive and undervalued” stock with “high potential upside”, the lower TP is due to the lower valuation for the spirits segment as he lowered his spirits ebitda forecasts.

However, he still believes that ThaiBev remains attractively priced at -1 standard deviation (s.d.) of its five-year mean P/E, backed by an expected earnings recovery and underpinned by “favourable tailwinds that are already underway”.

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