Charoen Pokphand Foods Plc (CPF) was established in 1978 with operations in animal feed production, livestock breeding, further processing and trade. Currently, CPF invests overseas in nine countries, has subsidiaries in 17 countries and exports to over 40 countries. Furthermore, CPF is today the leading producer of feed and one of the largest producers of poultry in the world. Charoen Pokphand Foods is listed in the Stock Exchange of Thailand under the code: CPF.
Recently, we may be a seeing a possible “double-top” emerging for CPF, as shown in the graph below:
A double-top is confirmed if CPF’s share price breaks past key support point at $26.5. There is a significant support point at $17.4 (where a double-bottom was previously formed).
Fundamentally, at assumed required rate of return of 12.0%, our simple desktop analysis assigns an indicative equity value of $21.92 per share to CPF (which is approximately: 30% discount to current market price of $28.50 per share):
Research houses have pegged a target price of between of $31.00-$42.00 per share for CPF:
The above is a simple desktop analysis, without dwelling further into the company fundamentals. There may be potential trading opportunity for entry, should CPF trade between $21 – $26 per share.
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