Maybank Kim Eng Securities maintained its “buy” rating on the shares of CP All PCL, citing expectations of solid second-quarter earnings.
CP All’s second-quarter earnings could grow 15 percent year-on-year, driven by 150 new branches and promotions. However, sales in June might come under pressure due to the rainy season, Maybank said in a report.
“We expect CP All to consolidate the Makro financial statement from third quarter of 2013, while CP All’s normal operations should remain healthy. We maintain our positive view on CP All based on the long-term growth potential,” it said.
Siam Makro is Thailand’s largest convenience store that was recently acquired by CP ALL. The two companies have combined sales of more than 300 billion Thai baht ($9.66 billion)
The research house recommend that investors buy on any weakness in the share price, with a target price at 48 baht.
At the midsession break, the shares were up 1.38 percent at 36.75 baht, while the broader SET index was down 0.68 percent.
1415 (0715 GMT) ($1 = 31.0500 Thai baht) (Reporting by Pairat Temphairojana; Editing by Anupma Dwivedi)