Brokers' take

Thai Beverage | Buy Target price: S$0.87 Nov 27 close: S$0.63 DBS Group Research, Nov 27

We maintain our buy recommendation on ThaiBev with a revised target price of S$0.87. Despite weak FY2018 results, we expect that the worst operational performance is behind us, and the group should return to a growth trajectory in FY2019 forecasts. We believe the approximately 28 per cent year-to-date decline in share price has priced in the negative operating performance and the weak domestic consumption.

We advocate looking beyond these issues and positioning for an eventual recovery. In addition, ThaiBev's gearing should progressively taper down over the forecast years given its stable and strong operating cashflow.