Reuters: Hot Stocks: STOCKS NEWS THAILAND-CIMB cuts Bank of Ayudhya price target after GE stake sale

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STOCKS NEWS THAILAND-CIMB cuts Bank of Ayudhya price target after GE stake sale Sep 27th 2012, 02:57 Wed Sep 26, 2012 10:57pm EDT CIMB Research cut its price target for Bank of Ayudhya Pcl to 37 baht from 40 baht, while keeping an 'outperform' rating, citing possible transition risks after a stake sale by shareholder General Electric Co (GE). On Wednesday, Bank of Ayudhya shares suffered their biggest one-day loss in a year, falling 7.5 percent to 30.75 baht as GE sold a 7.6 percent stake in the bank in a block trade to institutional investors. According to a source, GE sold part of its stake at 31.30 baht per share. "GE's sale of 8 percent of BAY seems a prelude to its complete exit. The incoming shareholder is likely to keep BAY's retail focus although transition risks prompt us to trim our target 2012 price to book value from 2.2 times to 2 times," the broker said. "We keep the stock at outperform on the bright retail banking prospects but drop it from our sector favourites, which are now Thanachart Capital and Krung Thai Bank ," it said. The stock has risen 40 percent so far this year versus the banking subindex's 34 percent gain. (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com)

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