Citi Research upgraded CP All Pcl, Thailand's
largest convenience store operator, to 'buy' from 'neutral' and
raised its price target to 47.5 baht from 44 baht, citing its
recent acquisition of wholesaler Siam Makro Pcl.
The broker maintained a 'sell' rating on Siam Makro with a
price target of 640 baht.
Shares of CP All, the most actively-traded stock by
turnover, climbed 1.2 percent to 42 baht while Siam Makro shares
were up 0.3 percent at 756 baht.
"... We take into account near-term synergies from the Makro
acquisition and revise up FY14-15E earnings by around 12
percent, despite the near-term challenge of debt load and
uncertainty on capital structure," it said in a report dated May
The CP All-Makro deal would transform Thailand's grocery
market sector to favor modern grocery with the combined entity
controlling 18 percent of total market and 40 percent of modern
grocery, it said.
1100 (0400 GMT)
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(Reporting by Viparat Jantraprap in Bangkok; Editing by