RBF Hits a Record High, Breaking Analysts’ TP in Anticipation of Medical-Used Cannabis

The share price of R&B Food Supply Public Company Limited (BRF) rose ฿0.60/share or 5.13% to close the morning session on Thursday at ฿12.30/share with a trading value of 415 million baht, making an all-time high since entering the market. The highest price in the morning session was ฿12.60/share, and the lowest price was ฿11.50/share.

 

Kasikorn Securities (KS) stated that cannabis indica and cannabis sativa will be the main ingredient to produce CBD oil for medical use, but would take time to grow the plant after approval. Thus, KS expected cannabis-contained beverages will be trendy in 2022.

BRF, as an upstream and downstream CBD oil producer, would generate upside to its profit in 2022 around 4-11% from producing CBD oil. KS expected an upside around 6-14% to RBF’s current target price at ฿9.40/share.

 

Meanwhile, Finansia Syrus Securities (FSS) expected RBF to record an increase of net profit in 4Q20 by 87% when compared to the previous year due to higher orders without any impact from the Covid-19 outbreak.

As for 2020 and 2021 earnings, FSS estimated an increase of 41% and 22%, respectively, which benefited from the approval of cannabis indica and cannabis sativa that will be finalized in 2H21.

In addition, FSS recommended “BUY” on RBF with a target price at ฿12.00/share.