Thai Beverage Public Co. (SG:Y92) is a leading beverage company in Southeast Asia. The company’s stock has been volatile for the last few years. YTD, the stock has been trading down by 12%.
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Recently, the company has been struggling due to high-cost pressures on its margins. However, analysts are looking at the bigger picture and are still optimistic about the long-term aspects. They have rated the stock as a Strong Buy and anticipate a potential price increase of around 40%.
The Bull Case
Yesterday, analyst Llelleythan Tan from UOB Kay Hian confirmed his Buy rating on the stock with a forecast of 30% growth in the share price.
Tan believes the influx of tourists in Thailand and Vietnam will drive sales volumes for the company. The company’s substantial market share serves as a significant factor, contributing to its potential growth in the future. Even though smaller players are expected to enter the beer market in Thailand, Tan feels it is not going to have any negative impact on the company.
Tan stated that the stock’s current valuation is well supported by these favorable tailwinds, making it an attractive investment option.
Thai Beverage Price Target
According to TipRanks, Y92 stock has a Strong Buy rating, backed by all seven Buy recommendations.
The Y92 price forecast is S$0.81, which shows an upside of 40% on the current price level.
Conclusion
Despite facing cost pressures, the company has consistently enhanced production efficiency across its entire portfolio. ThaiBev’s robust brand reputation and extensive distribution network provide a significant advantage over new competitors.
The analysts are confident in the stock’s long-term prospects and have rated it a Strong Buy.
