The share price of Central Retail Corporation Public Company Limited (SET: CRC) is rallying strongly for the past month in anticipation for a business recovery in 2022.
CRC closed the morning session on February 9, 2022, at THB38.50 per share, increased THB1.50 or 4.05% with a trading value of 882 million baht. Meanwhile, it rose 8.82% in the past five days and 16.54% in the past month.
Asia Wealth Securities (AWS) has given a “BUY” recommendation for CRC with a upgraded target price to THB42 per share.
AWS stated that CRC has strong growth prospects in 2022 with 4 business key drivers by CRC Retailligence; 1) Reinvent Next-Gen Omni Channel, 2) Accelerate Core Leadership, 3) Build New Growth Pillars, and 4) Drive Partnership, Acquisition and Spin-Off. Meanwhile, the company still pays attention to branch expansion and developing a digital platform.
The securities company revised its net profit forecast for 2022-2023 to reflect the recovery of both domestic and international businesses. If the recovery in tourists is faster than expected, it will be an upside to CRC. AWS expected a strong 1Q22 earnings outlook and latest SSSG for Jan 2022 growth of more than 20%YoY. In addition, fashion, hardline and food businesses are recovering strongly and growing YoY.
According to Refinitiv, 13 analysts have given “buy” recommendation on CRC, while 1 gave a “hold” recommendation and no “sell”. The consensus target price at THB41 per share.
