Reuters: Hot Stocks: STOCKS NEWS THAILAND-Citigroup raises Big C target price

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STOCKS NEWS THAILAND-Citigroup raises Big C target price May 3rd 2012, 02:10 Wed May 2, 2012 10:10pm EDT Citigroup raised its target price on hypermaket operator Big C Supercenter Pcl to 100 baht ($3.24) from 71 baht ($2.30), reflecting an upgrade of its 2012 earnings forecast after strong first-quarter earnings, but kept its "sell" rating. On Wednesday, Big C shares closed up 2.9 percent at 195.5 baht ($6.34) and hit an intraday record high of 197.5 baht after it reported better than expected quarterly results. For the company statement, click "Following the impressive first quarter result, we revise up our 2012-2014 estimates by 37-63 percent and target price taking into account improving rental income outlook, resilient same store sales (SSS) growth post floods, and change in funding and expansion estimates," Citi said in a report dated May 2. The brokerage said it maintained its "sell" rating on Big C due to its expensive valuation, rising competition and wage cost pressures from the minimum wage policy. "While Big C has not quantified the impact of the minimum wage policy, we believe it will face more cost pressures than other retailers in the department store and specialty segments." (Reporting by Viparat Jantraprap in Bangkok; Editing by Richard Pulli; viparat.jantraprapaweth@thomsonreuters.com)

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