The share price of Indorama Ventures Public Company Limited (IVL) edged higher on Feb. 4, 2021 to ฿39.00/share, an increase of ฿1.25/share or 3.31% with a trading value of 2,332 million baht.
Capital Nomura Securities recommended “BUY” on IVL with a target price of ฿40.00/share on expectation of an outstanding 4Q20 profit. CNS was slightly negative toward 4Q20 earnings of approx. 1,012 million baht, a rebound from a year earlier, as SG&A and tax are likely to be higher than expected, however, CNS doesn’t see any long-term impact from this.
Rebounding to report a profit because there was no stock loss and sales volume didn’t suffer from a trade war. Moreover, last year IVL acquired more businesses.
CNS revised up the 2021-2022 earnings projection, reflecting a spread PET and a rapid recovery of Fibers NPM. 2020 earnings is expected to show an improving performance to 15,172 million baht, driven by the recovery of sales and NPM from Covid-19.