CIMB Research raised its price target for Tisco Financial Group Pcl to 57 baht from 55 baht after the financial firm reported a better-than-expected fourth quarter net profit. It maintained a 'neutral' rating.
On Friday, Tisco shares closed down 0.5 percent at 54.25 baht before it announced the quarterly earnings. It was up 4.3 percent since the start of the year versus a 0.3 percent gain of the broader banking subindex.
Tisco reported a quarterly net profit of 995 million baht ($32.86 million), up 47 percent year-on-year and up 4 percent quarter on quarter. The result was 4 percent higher than the broker estimate because of a strong fee income.
"The quarter was fairly representative of the full year which saw explosive loan growth but net interest margin (NIM) stress. From mid-13, the reverse could be the case as new loans will be scarcer but NIM should improve," it said in a report.
"Despite the near-term attractive earnings outlook and tempting valuations, we keep the stock at neutral as its longer-term return on equity (ROE) sustainability is in doubt," it said.
0933 (0233 GMT)
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(Reporting by Viparat Jantraprap in Bangkok; Editing by G.Ram Mohan)
($1 = 30.28 baht)