TOA Rises 7.6% to ฿42.5, Analyst Recommends “BUY” at ฿43 as 2H Tends to Grow Higher

In the morning session on July 15, 2019, the share price of TOA Paint (Thailand) Public Company Limited (TOA) rose as much as 7.6% or ฿3.00/share, more than any full-day gain since January 2018, to ฿42.50/share before edging lower to close the morning session at ฿41.25/share with a trading value of THB 228.4 million.

TOA is at a 25% premium to the analysts’ consensus target price. The stock traded at an average 1.5% premium over the past year. Meanwhile, TOA advanced 3.9% in the past 52 weeks as the Stock Exchange of Thailand SET Index gained 5.4%.

Nomura Securities estimated TOA’s 2Q19 normal profit to have an outstanding and constant growth until at least the end of 2019 with a positive view of the business. Even though TOA’s share price is hiking, Nomura still recommends “BUY” at ฿43.00/share, calculating from TP20F to DCF (WACC 8.7%, TV growth 3.5%).