Company Name: SUPER GROUP LTD.
| Research House: UOB KayHian | Price Call: BUY | Target Price: 3.00 |
UOB Kay Hian raised its target price on Super Group to $3.00 from $2.55 and maintained its buy’ rating, citing the company's good execution track record and upside potential from rebranding efforts.
Super manufactures, packages and distributes instant cereal flakes, beverages, coffee powder and other convenience food products. Its shares were up 2.7% at $2.30 on Tuesday and have surged 75% so far this year.
UOB said a successful rebranding exercise could allow Super to gradually raise product prices, which are currently 8-10% below the levels of peers such as Nestle. This is critical amid volatile raw material prices, UOB noted.
The brokerage said it also sees promising growth prospects for consumer branded goods in key markets such as Thailand and Myanmar, which could deliver top-line growth of more than 10% per annum.
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