COM7 Surges 5.5% as Analyst Expects Strong Revenue in 2021 with a “BUY” Recomm. at Bt60

The share price of COM7 Public Company Limited (COM7) continued to rally on Wednesday after a 9.55% surge in yesterday’s session.

 

As of 10:05 local time in Thailand, COM7 rose ฿3.00/share or 5.50% to trade at ฿57.50/share with a trading value of 338 million baht. The highest price as of now was ฿58.00/share and the lowest was ฿55.75/share.

Yesterday, COM7 surged ฿4.75/share or 9.55% to close at ฿54.50/share with a trading value of 2,739 million baht.

 

UOB Kay Hian stated that investors remain cautious on investing in big-cap stocks without a clear vision on the fund flow, resulting in an adjustment to focus on individual plays on stocks with positive factors such as COM7, PTG and SAWAD, due to positive earnings in 2020.

 

KTB Securities (Thailand) (KTBST) maintained its “BUY” recommendation on COM7, while raising the target price from ฿48.00/share to ฿60.00/share.

 

KTBST stated that it reiterated a BUY rating on COM7, but raise the target price to Bt60.00 from Bt48.00 and 2021E PER multiples to 40.3x (+2.5 SD above its 5-yr average) from 37.5x (+2.0 SD) following the 2021E earnings forecast upgrade.

KTBST was positive about guidance at an analyst meeting on Thursday, February 25. First, the on- and offline channels are expected to generate stronger revenue in 2021E on the back of i) a proactive opening of 100 new stores in 4Q20, ii) a greater number of store operating QoQ in an absence of COVID-19 restrictions, and iii) a still-strong demand for iPhone 12. Last, the company aims to cut its operating expense along with higher employee efficiency.

 

In addition, KTBST upgraded its 2021-22E net profit forecast by 18%/17% to Bt1.79bn (+24% YoY)/Bt2.17bn (+21% YoY), as the security company revised up revenue growth estimate and cut SG&A sales assumption.