Stocks in Focus on November 20, 2023: BCP and CBG

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 20, 2023.


Maybank Securities (Thailand) (MST) gave a “BUY” recommendation on Bangchak Corporation Public Company Limited (SET: BCP) with a target price at ฿59.00/share.

MST maintained BUY on BCP and raised its target price to THB59 after revising up earnings. The firm stated that it liked BCP for three main reasons. First, BCP consistently outperforms its peers in terms of GRM, as it is best positioned to take advantage of the shortage of low light-sweet crude premium and global diesel. Second, it is the only company that will benefit from earnings accretion from acquisition with potential upside from synergy. Lastly, BCP faces limited headwinds, neither in its operations (oil spill impact TOP and SPRC) nor exposure to petrochemical downcycle (IRPC, PTTGC). Valuation remains attractive at 0.8x P/BV, 5.4x P/E and 3.6x EV/EBITDA for FY24E.


KGI Securities gave an “Outperform” rating on Carabao Group Public Company Limited (SET: CBG) with a target price at ฿85.00/share.

KGI cited guidance from CBG’s management implied positive earnings growth momentum. Based on the company’s guidance of revenues of Bt200-250mn from packaging for Carabao Beer in 4Q23 and improved margin from lower costs, KGI expected to see a sharp recovery in earnings in 4Q23. Meanwhile, signs of more revenue contribution from Carabao Beer implies some possible upside to KGI’s 2024 forecast. With the short-term positive catalyst, there could be some upside to the share price beyond KGI’s 2024 target price of Bt85.00 (PE 35x).