Reuters: Hot Stocks: STOCKS NEWS THAILAND-Bualuang downgrades Berli Jucker to 'sell'

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STOCKS NEWS THAILAND-Bualuang downgrades Berli Jucker to 'sell' Aug 29th 2012, 04:15 Wed Aug 29, 2012 12:15am EDT Bualuang Securities downgraded commercial conglomerate Berli Jucker Pcl to 'sell' from 'hold', citing its rich valuation and a modest projected earnings growth over the next three years. The broker has a target price of 39.5 baht on the stock. Berli shares are up 2.19 percent at 46.75 baht. That compares with a 0.4 percent gain of the commerce subindex and a 0.31 percent rise of the broader SET index . The stock traded at 29.8 times its price to 2012 earnings and 25.7 times for 2013, relatively high for the sector, the broker said. It forecast a modest compound annual growth rate (CAGR) of 16 percent for three years ending 2015. "BJC's operation is concentrated in the mid- to up-stream levels of the supply chain, which in our view deserves a lower multiple than downstream firms, as bargaining power at those levels is weaker both as a vendor and as a buyer," it said. "Although BJC is moving downstream, we don't think it is yet appropriate to price it as a downstream play," it said. 1059 (0359 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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