Nomura Equity Research initiated coverage of Sansiri Pcl with a 'buy' rating and a stock price target of 6 baht, citing the property company's high exposure to landed property and its attractive valuation.
Sansiri shares closed down 1.4 percent at 4.98 baht on Thursday. The stock has risen 41.5 percent so far this year, outperforming the 32 percent rise of the property subindex .
"Sansiri is now our top pick in the Thai property sector. We like the stock for its market dominance, high exposure to landed property segment of 40-50 percent and attractive valuation," the broker said in a report.
The stock traded at 12 times forward price-to-earnings multiple versus its peer average of 13 times, with a 2013 dividend yield of 4 percent, the broker said.
0916 (0216 GMT)
(Reporting by Viparat Jantraprap in Bangkok, Editing by Anupama Dwivedi)