BANPU Spikes 6% to Bt11.90 after Coal Price Reach 2-Y High! Analyst Recomm. “BUY” at Bt13
BANPU Spikes 6% to Bt11.90 after Coal Price Reach 2-Year High!
The share price of Banpu Public Company Limited (BANPU) closed the morning session on Monday at ฿11.90/share, increased ฿0.70/share or 6.25% with a trading value of 1,733 million baht. The highest share price in the morning session was ฿12.10/share and the lowest was ฿11.20/share.
BANPU regained its momentum after the coal price (Newcastle) rose to a new high in two years. Krungsri Securities (KSS) stated that the sentiment would be lifted for BANPU by higher coal prices as Newcastle coal rose to US$93.8/ton, which could turn BANPU’s bottom-line back to black this year, giving a target price at ฿13.00/share.
KGI Securities at the beginning of the month rated BANPU “Outperform” with a target price at ฿13.00/share after revising earnings estimates by 43% to Bt7.95bn in 2021 and 35% to Bt6.3bn in 2022 thanks to a higher coal price and lower coal cost.
KGI adjusted up assumption for coal price for 2021/22 from US$75/70/ton to US$80/75/ton with an unchanged long-term price of US$70/ton, supported by La Nina weather and the global economic recovery this year.