IVL Gains 5% on the Speculation of 2Q21 Earnings to Hit a Record High in 3 Years

The share price of Indorama Ventures Public Company Limited (IVL) rose ฿1.75/share or 4.83% to ฿38.00/share as of 15:41 local time in Thailand on August 2, 2021, with a trading value of 591 million baht.

 

Asia Plus Securities (ASPS) has given a “BUY” recommendation on IVL with a target price at ฿45.00/share on an attractive upside to its earnings in 2Q21.

ASPS expected IVL’s 2Q21 earnings to increase 27.5% QoQ, making a new quarterly high in three years as the normalized profit surges 83.8% QoQ, mainly supported by a significant increase of spread from its integrated PET business.

However, the securities company reiterated its view on slower earnings in 2H21, compared to the first half due to seasonality, but still in a limited impact. The company currently has a stable spread from its western businesses.

In addition, ASPS stated that the share price had passed its correction point and starting to see an attractive upside to its target price, thus, upgrading the recommendation from “Switch” to “BUY on Weakness,” stating that there could be a negative factor from a capital increase pressuring the share price in the short-term.