Consensus Recommendations: Thailand
Analysts have had positive recommendations on Thailand for 5 years, and sure enough it remains a Buy in Asia, although growth estimates are the lowest they’ve been in five years.
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The Voss Value Fund was up 4.09% net for the second quarter, while the Voss Value Offshore Fund was up 3.93%. The Russell 2000 returned 25.42%, the Russell 2000 Value returned 18.24%, and the S&P 500 gained 20.54%. In July, the funds did much better with a return of 15.25% for the Voss Value Fund Read More
Many stocks continue to hold investor interest.
The bullish view on Thai Foods Group is based on expectations of higher chicken and live pig prices, as well as TFG’s ability to increase its sales volume.
Analysts are pessimistic about Thai Vegetable Oil, however, as imported cheap soybean meal from Argentina is putting pressure on TVO’s gross margin.
Consensus Earnings Estimates: Thailand
As mentioned earlier, the current consensus EPS growth estimate is the lowest in 5 years, down from 10% in December of last year.
Of course that doesn’t apply to all stocks. Analysts believe the rubber industry is entering a new cycle and expect Sri Trang Agro Industry to turn its highest net profit since 2013 after a net loss last year.
Analyst consensus expects a fall in EPS growth for Indorama Ventures due to a high base, since the company made a bargain purchase that was booked in 2016.
Consensus Target Price: Thailand
The 12-month forward expected return for the market is now at 8% versus 10% in December 2016. They mostly explain the change as due to a slight gain of the SET Index since then.
In line with the expected turnaround and growth in EPS, Sri Trang Agro Industry also has among the highest consensus target price expected returns at 49%.
Analysts are worried about low growth though, and have taken out their pessimism on Jasmine International, whose target price is expected to fall by 31%.
Article by Dr. Andrew Stotz, Become A Better Investor
