The share price of Energy Absolute Public Company Limited (SET: EA) climbed back above THB90 per share on Thursday after several rumors in early April that led to a total of 13% decline in share prices over the course of four days.
The share price fell for four days straight from the closing of THB100 per share on 5 April 2022 to close at THB86.75 on 11 April 2022 on the rumor that the company claimed to be at fault.
On 7 April, EA clarified that information published in various media regarding the company’s projects, including power plant projects in Nakhon Sawan and Lampang provinces, the BlueTech City Industrial Estate Project in Chachoengsao province, as well as the share trading of Mr.Somphote Ahunai, the Chief Executive Officer, is false in any way.
However, the share price saw a slight uptick in the past few days and a gain of more than 2.5% today results in the share price to trade above the THB90 level at THB90.75 per share.
According to the consensus by Refinitiv, there are three buy recommendations, two hold and no sell. The consensus target price for EA is THB97.50 per share.
On 19 April, TRIS Rating affirms the company rating on Energy Absolute Public Company Limited (SET: EA) at A and affirms the ratings on EA’s senior unsecured debentures at A-. TRIS Rating also affirms the stable rating outlook of EA. The ratings continue to reflect EAs robust cash flows from its power generation assets with long-term Power Purchase Agreements (PPAs), as well as its first-mover position in the lithium-ion battery manufacturing industry and moderate financial profile. However, the ratings are constrained by execution risks in its battery manufacturing and electric vehicle (EV) businesses as well as continued rising debt from investments and working capital needs for the EV business.
