Thai Union Frozen Products
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Discounted for the worst, hoping for the best Outperform - maintained Share price: Bt 65.00 Target price: Bt 86.00
Thai Union Frozen Products Plc (TUF)
We believe TUF’s share price decline has largely factored in the rights issue, leaving upside catalysts as M&A deals are gradually announced. We are banking on management to execute value-enhancing M&A given its good track record. Based on our unchanged target price (13x CY13 P/E), our calculated ex-rights target is THB76, which still offers 21% upside to the theoretical ex-rights price of THB63. Maintain Outperform.
