Earnings Estimate For Thailand Lowest In Five Years

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Earnings Estimate For Thailand Lowest In Five Years

Consensus Recommendations: Thailand

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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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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.

Consensus #earnings growth estimate for #Thailand is the lowest in 5 years

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.

The 12-month forward expected return for the #SET Index is now at 8%

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

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In 1992 Dr. Andrew Stotz, CFA, left a management career at Pepsi-Cola in California to teach finance in Thailand. In 1993, he found his life calling as a financial analyst, a job for which he was eventually voted #1 in Thailand. In the second half of his 20-year career in investment banking, Dr. Stotz was a Head of Research, leading teams of financial analysts. He served as a two-term president of CFA Society Thailand and now runs his firm, A. Stotz Investment Research, which provides research and tools for institutions and high-net-worth investors and helps CEOs make their companies financially world class.
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