TCM – Likely cancellation of TPP decimates share price
TCM – Likely cancellation of TPP decimates share price
January 23, 2017
■ TCM was a stock market darling when hopes for the TPP ran high, but the likely cancellation of the trade pact following Trump’s election decimated its stock price.
■ Nearly ¼ of TCM’s revenues are derived from export sales to the US market, and the TPP would have given the firm a big advantage over its Chinese competitors.
■ We believe the worst is over for the firm, so we maintain our Add rating but slash our target price which is now based on 8.5x FY17F P/E (previously based on DCF).
