Super Group's target price raised to $3.00 vs $2.55 by UOB-KayHian

UOB KayHian raises Super Group target to $3.00, a Street high, from $2.55, based on 1.0x PEG from 0.85x previously on its strong execution track record and potential upside from its rebranding
exercise.

It notes the 20.7x implied 2013 target P/E is within the 7x-24x historical range since 2003; “We see a compelling case for Super to trade towards the higher end of its range due to its improving brand
positioning and market share in selective growth markets such as Myanmar, Indonesia and the Philippines.”

It notes the group-wide rebranding begins 1Q13, with tangible sales upside targeted by 4Q13; management’s Owl brand exercise, starting October 2011, was encouraging, with market-share and sales increasing by over 10%, it says. “A successful re-branding exercise could allow Super to gradually raise product prices, which are currently 8%-10% below that of peers such as Nestle. This is critical amid volatile raw material prices.”

It forecasts a conservative 20.6% three-year EPS CAGR, but tips potential re-branding upside. “Super remains on our Buy list with potential catalysts from consensus upgrades, M&A and rising dividends.”  The stock is up 8.9% at $2.44.