CLSA has upgraded its outlook for Indorama Ventures Public Company Limited (SET: IVL), raising a target price to THB 32.00 per share and maintaining an ‘Outperform’ rating as PET oversupply pressures begin to ease. The target price indicates a 31% upside from the closing price of THB 24.40 on August 31, 2026.
According to the brokerage, 2026 is expected to mark the end of new PET supply additions, setting the stage for a more balanced market and potential earnings upside for IVL in the near term.
Management has reassured investors that there will be no impairments for its MEG assets in the United States, addressing a major concern previously weighing on the stock. This is reinforced by IVL’s proactive approach to inventory management—by keeping inventory lean, the company has shielded itself from oil price volatility, leading to healthier product prices and spreads during the third quarter of 2026 than the market had anticipated.
Further signaling operational confidence, IVL declared an interim dividend as the company’s leverage continues to decline. This move underscores management’s positive expectations for continued operational improvement, as per CLSA.
Reflecting these favorable developments, CLSA has raised its net profit forecasts for IVL from 2026 to 2028 and updated its DCF-based valuation accordingly, lifting the target price from THB 28.00 to THB 32.00 per share.
