The share price of Exotic Food Public Company Limited (XO) rose ฿0.40/share or 4% to ฿10.40/share with a trading value of 54 million baht in the morning session of October 28, 2020.
Capital Nomura Securities (CNS) has given a “BUY” recommendation on XO with a target price at ฿15.30/share as the security company estimated the 3Q20 earnings could be higher than anticipated.
XO’s 3Q earnings were expected to come in at 93 million baht, an increase of 124% YoY and 1% QoQ as the orders remained high, supporting its revenue and margin to reach a new high. Moreover, CNS expected XO’s profit to remain high for the next two quarters (4Q20 and 1Q21).
As for the valuation, CNS saw a good opportunity to invest as the PER20 is at 13.2x, lower than the mean at 21x and NRF at 30x. The revenue forecast could be adjusted in the future to be in line with customers’ cooking-at-home behaviour.