CPF Jumps 3% as Pig Price Spikes, Analyst Recomm. “BUY” at ฿37

CPF rose 6.54% in yesterday’s trading session due to the spike in swine selling price in Vietnam to VND80,000 per kg., increased by 5%. The analyst recommended “BUY” with a target price at ฿37.00/share.

 

After a day of speculation, the share price of Charoen Pokphand Foods Public Company Limited (CPF) yesterday was ฿28.50/share, an increase of ฿1.75/share or 6.54% with a total trading value of 2,967.08 million baht as pig prices in Vietnam up same as in Thailand. 

 

Phillip Securities (Thailand) stated that CPF has received positive sentiment in the past 5 days from the pike in Vietnam’s swine price to VND80,000 per kg. or an increase of 5%, aligned with the price in Thailand.

 

The analyst reiterates the “BUY” recommendation on CPF at a target price of ฿37.00/share, expecting the integration of swine business in China and the CP-Tesco merger to drive up CPF’s earnings significantly. CPF’s current share price is trading at 10x P/E without any reflections from business merger in China and the acquisition of Tesco.

 

Meanwhile, LH Securities has given a “Speculative Buy” recommendation on CPF at a target price of ฿35.00/share as CPF would receive positive sentiment from the swine business in China, Vietnam and Thailand, as well as the the acquisition of 20% stake in Tesco Lotus.    

 

As of today, the share price of CPF was traded at ฿29.25/share in the morning session, increased ฿0.75/share or 2.63% with a trading value of 1,851 million baht.