ThaiBev cut to ‘hold’ by OCBC with higher fair value of 89 cents

SINGAPORE (June 16): OCBC Investment Research is downgrading its “buy” to “hold” recommendation on Thai Beverage (ThaiBev), while lifting its fair value estimate for the stock from 83 cents to 89 cents.

In a Thursday report, lead analyst Jodie Foo notes that ThaiBev’s share price, following 1Q16 results, has “done well thus far” and serves as a “testament to the success of its new marketing strategy for Chang Beer”. It is partially in observation of this sharebro price run-up that the stock has been downgraded.  

“Recall that (ThaiBev’s) market share for beer had increased from 30% to ~40% and (its) ASP, volume and net profit had improved significantly,” says Foo, adding that it is this segment that will help to drive its growth in the years to come.

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