Reuters: Hot Stocks: STOCKS NEWS THAILAND-Kasikorn cuts True Corp target price

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STOCKS NEWS THAILAND-Kasikorn cuts True Corp target price Jun 25th 2012, 06:05 Mon Jun 25, 2012 2:05am EDT Kasikorn Securities lowered its target price on True Corp Pcl to 2.6 baht from 2.68 baht, saying the owner of Thailand's third-biggest mobile phone network may need to raise capital to expand its 3G network. At the midsession break of 0530 GMT, shares of True Corp were down 1.6 percent at 3.68 baht, underperforming the benchmark SET index which was down 0.14 percent. "Given the company is likely to go through another round of capex to fund its 2.1GHz 3G expansion, we believe there is a risk of capital raising to fund any capex shortfall," the broker said in a report. "With the balance sheet still stretched, potential difficulty in keeping up with other mobile operators on 3G capex, and the likelihood of net losses continuing in 2012, we maintain 'underperform' on the stock," it said. The broker estimated the company's 2012 net debt to equity and net debt to EBITDA at 4.5 times and 5.0 times, respectively. 1245 (0545 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 12:09 STOCKS NEWS THAILAND: Citigroup favours big banks Thailand's robust loan growth in May comes at a time when pressure was building up on funding and liquid assets were on the decline, positioning big banks better, Citigroup said. Citi Investment Research & Analysis, a division of Citigroup Global Markets Inc, kept its 'buy' rating on Kasikornbank Pcl KBAN.BK and Bank of Ayudhya Pcl BAY.BK, while rating TISCO Financial Group Pcl TISCO.BK as a 'sell', it said in a report dated June 22. "Competition on deposits may cap the net interest margin expansion despite robust lending growth. Small banks usually fare worse in this environment," it said. Loans for major banks in May grew 1.2 percent month on month and 14.6 percent year on year, led by retail and SME loans, while funding growth was down 0.3 percent month on month. 1126 (0426 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ($1 = 31.77 baht) Link this Share this Digg this Email Reprints

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