The share price of Thai Union Group Public Company Limited (TU) rose ฿0.70/share or 3.50% to ฿20.70/share as of 11:32 local time in Thailand, with a trading value of 841 million baht.
Finansia Syrus Securities (FSS) has given a “BUY” rating on TU with a target price of 25 baht, stating that earnings in 3Q21 are likely to grow at the same rate as last year, despite the high base last year from weak baht and the recovery of the Frozen and Pet Care segments have compensated for weak Ambient.
At the second of the year, there is a catalyst from a plan to list TFM in the Thai stock market. The company’s long-term growth will be driven by a growing proportion of high-margin innovative products, and SM intends to spin-off its pet care division in 2022 in order to capture hidden value.
FSS forecast TU’s 2021-2022 earnings to grow 19% compared to the same period of last year, giving a support at 19.80 baht and a resistance of 20.30//20.70 baht.