Reuters: Hot Stocks: STOCKS NEWS THAILAND-Nomura cuts PTT Global Chemical price target on H2 cost

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STOCKS NEWS THAILAND-Nomura cuts PTT Global Chemical price target on H2 cost Sep 27th 2012, 03:51 Wed Sep 26, 2012 11:51pm EDT Nomura lowered its price target for PTT Global Chemical Pcl to 73 baht as higher feedstock cost in the second half prompted a full-year earnings downgrade. PTT Global Chemical shares are up 0.4 percent at 62.25 baht. It has risen 2.5 percent so far this year versus a 2 percent gain of the energy subindex. The broader SET index is up 25 percent so far this year. Nomura said it expected PTT Global Chemical to report a strong recovery in third-quarter earnings, with a net profit of 11.9 billion baht ($384.12 million), up from 0.85 billion baht in the second quarter. The brokerage said it was cautious on the fourth-quarter outlook while it still kept a 'buy' rating on the stock. "While we cut our 2012 earnings by 25 percent to impute higher feedstock costs in the second half, weak second quarter earnings and our conservative outlook for the fourth quarter, we believe PTTGC remains a buy, underpinned by structural improvements in its margin profile as synergistic benefits kick in and attractive valuation," it said. 1034 (0334 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 09:57 STOCKS NEWS THAILAND-CIMB cuts Bank of Ayudhya price target after GE stake sale CIMB Research cut its price target for Bank of Ayudhya Pcl BAY.BK 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) GE.N. (Full Story) 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 TCAP.BK and Krung Thai Bank KTB.BK," it said. The stock has risen 40 percent so far this year versus the banking subindex's .SETB 34 percent gain. 0946 (0246 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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