Shares in national carrier Thai Airways International Pcl rose to a one-month high in strong trading volumes after the management provided a positive earnings outlook and as the stock price was seen as the region's laggard.
Thai Airways shares were up 2.8 percent at 22.2 baht, after climbing to 22.4 baht, the highest since November 12. About 16.5 million shares changed hands, 3.4 times the average full-day volume in the last 30 sessions.
"The key messages at the analyst meeting yesterday reaffirmed our view toward Thai Airways. Expectations of quarter on quarter earnings growth in the fourth quarter will soon catalyze the share price," broker Bualuang Securities said.
"The forecast FY12-14 earnings CAGR of 27 percent, driven by capacity expansion and yield improvement, should bring on more stock price appreciation," it said.
Thai Airways shares trade at 2013's price to earnings growth (PEG) of 0.3 times and an enterprise value/earnings before interest taxes depreciation and amortization (EV/EBITDA) ratio of 4.9 times, discounts to both its long-term averages and to regional means, the broker said.
(Reporting by Viparat Jantraprap in Bangkok; Editing by Anupama Dwivedi)
$1 = 30.625 baht