Reuters: Hot Stocks: STOCKS NEWS THAILAND-Nomura starts Banpu with 'buy', shares fall to 3-year low

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STOCKS NEWS THAILAND-Nomura starts Banpu with 'buy', shares fall to 3-year low Sep 24th 2012, 07:50 Mon Sep 24, 2012 3:50am EDT Nomura initiated coverage of Banpu Pcl, Thailand's biggest listed coal miner, with a 'buy' rating, saying it expected a strong earnings growth in 2014 and 2015 and because the stock now trades at an attractive valuation. The broker set a price target of 470 baht. Banpu shares were down 2.2 percent at 395 baht, falling at one point to 390 baht, the lowest since August 2009. The stock suffered its biggest one-day fall of 8.6 percent on Friday after a Thai court ordered Banpu to pay about $1 billion in damages to its former partners in the Hongsa power project in Laos. "We believe the market has already nearly priced in the worst-case scenario, which assumes that Banpu will agree to pay the Hongsa damages award. This is not the case here as Banpu disagrees with the ruling and plans to appeal," it said. "In our view, (Banpu) is unlikely to pay anything over the next four to five years. Further, the decision may be overturned in the higher courts, which could provide a positive long-term catalyst to the share price," the brokerage said. Banpu shares have fallen 27.7 percent so far this year, underperforming a 25.5 percent gain of the broader SET index . 1433 (0733 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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