Reuters: Hot Stocks: STOCKS NEWS THAILAND-CIMB cuts PTTEP target price

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STOCKS NEWS THAILAND-CIMB cuts PTTEP target price Apr 26th 2012, 05:27 Thu Apr 26, 2012 1:27am EDT CIMB Research cut its target price for PTT Exploration and Production Pcl to 165 baht ($5.33) from 195 baht ($6.30), reflecting a possible capital increase by Thailand's second-largest energy firm expected to help fund a bid for Cove Energy. The brokerage downgraded its rating on the company to neutral from trading buy. PTTEP shares were down 0.6 percent at 175.50 baht, with around 1.4 million shares traded, about 0.4 times their average full-day volume over the last 30 sessions. The stock has risen 4.2 percent so far this year. "While first quarter earnings outdid expectations due to surprisingly low exploration expenses, PTTEP's share price upside is limited as Shell's counterbid for Cove Energy ratchets up the risk of a bidding war, which could entail a capital increase for PTTEP," CIMB said in a research note. The broker said it raised its fiscal year 2012 earnings per share forecast but cut its target price due to higher discount cash flow from 10 percent to 25 percent that reflected the higher risk from the Cove bid. For related story, click 1222 (0522 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************** 11:22 STOCKS NEWS THAILAND-Toyo-Thai up on new projects Shares of Toyo-Thai Corporation Pcl TTCL.BK hit their highest in more than a week after the contractor secured two construction projects worth a combined 5.1 billion baht ($164.81 million), bolstering its earnings outlook. For the company statement, click Toyo-Thai shares were up 2.1 percent at 14.9 baht, with around 1.27 million shares traded, 0.68 times their average full-day volume over the last 30 sessions. The stock has gained 25 percent so far this year. Broker Tisco Securities rated the stock a speculative buy, citing the company's good earnings outlook. It set the stock's target price at 17 baht, a potential upside of 14 percent. 1108 (0408 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Clarence Fernandez) ************************************************** 10:31 STOCKS NEWS THAILAND-Citi downgrades Bangkok Bank to neutral Citigroup cut its rating on Bangkok Bank Pcl BBL.BK to neutral from buy, reflecting a softer net interest margin (NIM) outlook in the first half of 2012 that would cap future earnings of the country's biggest bank. The brokerage set the stock's target price at 200 baht ($6.46). Bangkok Bank shares, which have gained 21 percent this year, were up 0.54 percent at 185 baht on Thursday. "Bangkok Bank posted results that were in line, but we see negative NIM movement as limiting earnings upside from strong loan volume," Citigroup said in a report. "Bangkok Bank granted some flood aid to clients that would cap NIM in the first half of 2012 estimate at the first quarter 2012 level before recovery by the second half of 2012 estimate," it said. Overall, Thai banks reported strong first quarter 2012 profit, with core profit up 26 percent from a year earlier, it said. It recommended that investors stick with stocks with superior earnings growth rather than cheaper valuations with no catalyst. Kasikornbank Pcl KBAN.BK, Siam Commercial Bank Pcl SCB.BK and Bank of Ayudhya Pcl BAY.BK were among its top picks. 1020 (0320 GMT) (Reporting by Viparat Jantraprap; Editing by Richard Borsuk) (viparat.jantraprapaweth@thomsonreuters.com) ($1 = 30.945 baht) Link this Share this Digg this Email Reprints

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