Maybank Kim Eng Securities upgraded its rating on CP All Pcl , Thailand's largest convenience store chain, to 'buy' from 'hold' and raised the stock's target price to 53 baht from 44 baht to reflect earnings upgrades boosted by strong sales.
CP All shares were up 2.1 percent at 48.25 baht, taking its year-to-date gain to 4.4 percent. That compared with a 9.8 percent rise of the commerce subindex and around 7 percent gain of the broader SET index.
"We have reviewed our 2012-13F earnings and raised them by 2 percent and 6 percent, respectively, to price in the strong sales growth driven by a successful promotion campaign," the broker said in a report.
It forecast 2012 profit of 10.46 billion baht ($350.71 million), up 33 percent from the previous year. The company is due to announce 2012 earnings this month.
"CPALL has seen ongoing resilient growth fuelled by high same store sales growth and the ongoing expansion with more room to grow based on high population levels per store," the broker said.
1021 (0321 GMT)
(Reporting by Viparat Jantraprap in Bangkok; Editing by Jijo Jacob)