Brokers maintain their positive outlook on B.Grimm Power Public Company Limited (SET: BGRIM) while seeing limited downside risks to the potential energy bill from the new Thai government.
According to a Refinitiv Consensus, nine of twelve analysts still recommend “BUY” on BGRIM with a target price at THB44.93 per share, giving an upside from the current price of around 20%. FY23 revenue is estimated at 69,072 million baht, while the bottom line is expected at 2,490 million baht, representing an increase of more than 100% from 2022.
Yuanta Securities expected BGRIM to outperform its peers in the mid-term from its recovering bottom line. Power generator stocks have been under huge pressure in the past month in concerns of the new energy bills to be introduced by the new government that would lower the feed-in tariff by THB 0.70 per unit and also the potential of adjusting electricity purchasing methods (Availability Payment) between the government and private producers.
However, Yuanta Securities expected limited downside to BGRIM, which would be offset by easing cost pressure as seen by lower Asia Spot LNG price. Meanwhile, the company mainly focuses on renewable energy, which limits the impact from terminating the electricity purchasing method of Availability Payment.
Yuanta Securities chose BGRIM as its top pick among power generators, giving a “BUY” recommendation with a target price at THB 46.00 per share.
