Stocks in Focus on June 12, 2020: COM7 and BBL

Stocks in Focus on June 12, 2020: COM7 (Maybank Kim Eng TP at ฿30.00/share) and BBL (KGI Securities TP at ฿156.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on June 12, 2020.

 

Maybank Kim Eng has given a “BUY” recommendation on COM7 Public Company Limited (COM7) with a target price at ฿30.00/share.

Maybank raised COM7 target price from ฿22.75/share to ฿30.00/share as well as upgrading the rating to “BUY”, seeing that 2Q20 earnings should be less affected than the market forecast and may surprise with profits after store re-opening sooner than estimated. It will then take full advantage of 5G from 4Q20-2023 and profits may make all-time high again.

 

KGI Securities has given an “Outperform” rating on Bangkok Bank Public Company Limited (BBL) with a target price at ฿156.00/share.

KGI rolled its 12-month target price for BBL over using valuation at PBV of 0.65x (nearly -2SD to long-term mean), and reach a new fair value of Bt156 (from Bt140), as well as upgraded its rating to Outperform, from Neutral, due to more encouraging signs of margin improvement and more investment gain along with the equity market rally in 2Q20.

KGI stated that its forecast and rating reflect no improvement in asset quality in the near term given the sharp decline in domestic demand and weak economic activity. Loan growth seems to have more upside from increased loan demand to refinance debentures. KGI’s assumption is based on loan growth 3%/5% in 2020/2021 (vs. +4% YTD as of April 2020), NIM 2.43%/2.45%, credit cost 89bps.