On Friday at 11:23 AM (Bangkok time), the share price of Osotspa Public Company Limited (SET: OSP) rose by 2.55% or THB 0.40 to THB 16.10, with a trading value of THB 111.64 million.
Citi analysts have adopted a cautiously optimistic stance on OSP following the company’s recent briefing, pointing to a gradual recovery in domestic market share and significant growth in overseas sales.
The company’s management aims to become the market leader in energy drinks’ two-tier pricing segments by the end of 2025, a goal that the analysts suggest will require reinvestment of profits from other categories into the energy drinks sector.
Citi anticipates that OSP will experience modest domestic sales growth in the first quarter of 2025, as the company prioritizes sustaining market share momentum over immediate sales figures. Consequently, the analyst firm has upgraded the rating for OSP to ‘Neutral’ from ‘Sell’, maintaining a target price of THB 17 per share after a substantial 26% correction in share price.
The analysts believe the current market valuation, which stands at 15x price-to-earnings (PE), has already factored in the uncertainties stemming from pricing competition. It may take one to two quarters for the market to fully evaluate the impact of an ongoing price war.
