STOCKS NEWS THAILAND-Airports of Thailand pares gains; seen overvalued

Mon Dec 3, 2012 12:39am EST

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Shares in airports operator Airports of Thailand Pcl failed to hold on to earlier gains and fell to 93.75 baht at one point as the rallying stock was seen overvalued.

Growth in passenger traffic and strong earnings have sent Airports of Thailand shares 109 percent higher so far this year, outpacing a 30 percent gain of the broader SET index.

The stock set a record finish of 94 baht on Friday after it reported robust earnings.

Eleven out of 16 analysts tracking the company have a 'buy' or a 'strong buy' rating, one has a 'hold' and four have a 'sell' or a 'strong sell', according to Thomson Reuters Starmine.

Krungsri Securities said it downgraded the stock from 'buy' to 'trading' as the stock exceeded its fair value of 85 baht.

"Despite a strong 2013 earnings growth outlook and continued global airline expansion that may result in passenger growth exceeding our assumption, the stock is not cheap trading at the industry average 15x P/E as passenger growth at Suvarnabhumi Airport is close to fully utilized," it said in a report.

1222 (0522 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Anand Basu)

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10:48 STOCKS NEWS THAILAND-CIMB upgrades PTTEP as capital risk eases

CIMB Research raised its price target for PTT Exploration and Production Pcl PTTE.BK to 190 baht from 180 baht, reflecting a removal of capital increase overhang. It upgraded its rating on the stock to 'outperform' from 'trading buy'.

PTTEP shares were down 0.3 percent at 158.5 baht, after having climbed at one point to 159.5 baht. It jumped 3.3 percent to 159 baht on Friday after the company announced its capital raising. (Full Story)

"We reiterate our positive view on PTTEP on the back of a potential valuation rerating, better earnings outlook, and more attractive valuation," the broker said in a report.

"We raise our DCF-based target price to 190 baht by lowering our risk premium for PTTEP by 50 basis points to reflect the removal of the capital increase overhang," it said.

1038 (0338 GMT)

(Reporting by Viparat Jantraprap in Bangkok; Editing by Sunil Nair)

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