Krungsri Securities has upgraded its recommendation for STA to "Buy" and raised its 2027 target price to 24.00 baht from 22.00 baht, reflecting upward revisions to normal profit estimates for 2026-2027 by 16% and 12%, to 2,940 million baht and 3,233 million baht, respectively. This is supported by higher-than-expected rubber prices and good cost control. Although the company has lowered its 2026 sales volume target to 1.45-1.50 million tons and expects a capacity utilization rate of 55%, the research house sees downside risks from first-half sales volume of only 0.70 million tons, representing 48% of the target. Meanwhile, the trend for Q3 2026 is expected to slow due to weak demand. However, the enforcement of the EUDR regulation in 2027 is seen as an upside not yet included in estimates, with the company aiming to sell about 30,000 tons of EUDR rubber per month, accounting for roughly 25% of the total projected sales volume.
Sri Trang Agro-Industry Public Company LimitedKrungsri Securities upgrades STA to Buy and raises target price to 24 baht on higher profit estimates.
