The Investment Analysts Association (IAA) recommended ADVANC, BDMS, CPALL, KBANK, PTTGC as five outstanding shares for the year 2021, targeting the SET this year to move to 1,559 points in response to fund flow and the progress of the coronavirus vaccine, while stating that Covid-19 pandemic only affected market in a short-term and investors have already priced in the factors.
IAA survey showed that 23 securities analysts have picked five stocks as top picks in 2021 as follows:
1) Advanced Info Service Public Company Limited (ADVANC), the share would receive positive sentiments from government’s suggestion on working from home to contain a spread in Covid-19 and a return of fund inflow from foreigners buoys as ADVANC has solid fundamentals and good cash flow. ADVANC is expected to offer a dividend yield at 4.11%.
2) Bangkok Dusit Medical Services Public Company Limited (BDMS)’s profit is projected to continue rebound from 2Q20 due to a carefully managed cost and Thailand is entering an ageing society.
3) CP All Public Company Limited (CPALL), which is expected to take advantage both direct and indirect from government stimulus measures to improve public spending.
4) Kasikornbank Public Company Limited (KBANK) to support by high net interest margin, and the bank has an effectiveness in risk management. Moreover, KBANK is always on foreign investors’ radar.
5) PTT Global Chemical Public Company Limited (PTTGC), analysts expected the share to benefit from economic recovery once the coronavirus is broadly available and PTTGC also could take an advantage from gas cost.
In addition, IAA has suggested investors to avoid investing in tourism, hospitality and airline stocks, as well as, the shares that have surged more than 1,000% as the price already surpassed their intrinsic value. Meanwhile, forecasting SET Index to reach 1,559 points at the end of 2021.