Consensus Rates “BUY” on OSP, Expecting High 2021 Earnings and Cannabis Beverages

Analysts recommended “BUY” Osotspa Public Company Limited (OSP)’s shares as the current price did not reflect its 2021 net profit potential growth that could continue further. Meanwhile, OPS could factor in positive sentiment from the approval of commercializing cannabis in cosmetics and would see more in other products such as beverages in the future.

 

Primarily, analysts expected better growth in 4Q20 profit, supported by the cost reduction from “Fit Fast Firm” project, coupled with higher profit sharing from its JV companies along with the government scheme to boost consumer demand.

As for earnings in 2020, analysts estimated OSP to record around 3.8-4.29 billion baht from the higher production capacity of C-Vitt and the revenue from energy drinks that OSP expected the demand to rebound this year. More importantly, the company will fully record whole-year revenue from the glass bottle production and distribution in Myanmar.

 

KTB Securities (Thailand) gave a “BUY” recommendation at a target price of Bt54.00

Phillip Securities (Thailand) gave a “BUY” recommendation at a target price of Bt44.00

Capital Nomura Securities gave a “BUY” recommendation at a target price of Bt42.00

Asia Plus Securities gave a “BUY” recommendation at a target price of Bt41.00