Sri Trang Agro-Industry
Don't miss the bounce Trading buy - maintained Share price Bt18.30; target price: Bt29.31
Sri Trang Agro-Industry Plc (STA)
While STA is expected to report weaker 3Q11 results on Friday, we believe the bad news has already been priced in as it trades at undemanding valuations. The stock is liquid and would be catalysed by higher glove earnings that will counter balance its rubber division. A softer 2H11 is expected, as the third quarter is usually seasonally weaker. Our SOP-based target price falls after we lower our SET target P/E from 13.0x to 10.0x, but our TRADING BUY rating is maintained.
