The share price of Thai Union Group Public Company Limited (TU) rose ฿0.70/share or 3.15% to ฿22.90/share as of 15:40 local time in Thailand, with a trading value of 800 million baht.
Asia Wealth Securities (AWS) revised up its target price on TU to 24 baht (ex-TP 19 baht), which is pegged at 16x PER, but maintaining a “Speculative-Buy” rating. TU continues to move forward its investment in frozen food products on the back of Food Service recovery. Along with continued development of high-margin products.
AWS raised TU’s 2021 earnings forecast by 18% to 7,123 million baht, an increase of 32.50% YoY, and 2022 net income is expected to grow by 1.80% YoY to 7,251 million baht. The revision of earnings forecast was due to the baht depreciation trend and economies of scale.
TU also has an upside from Red Lobster. The US-based business is projected to make a turnaround from a loss in 2020.