Indorama Ventures
Play
Poised for recovery Outperform, maintained Share price: Bt33.25 Target price: Bt39.00 Petrochemical sector
Indorama Ventures Plc (IVL)
Despite a poor 4Q11 outlook when the confluence of negative events will erode earnings, we recommend investors look further ahead. We believe IVL is well poised for growth in 2012 on rising volume, improved margins and more contribution from its acquisitions. We see weak 4Q11 earnings as a buying opportunity and expect a strong recovery in 2012, driven by 16% volume growth and margin recovery. At 7x CY12 EV/EBITDA, IVL looks attractive. Our OUTPERFORM and EV/EBITDA target price are maintained.
