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Investing.com - CLSA downgraded CP Axtra (SET:CPAXT) from Outperform to Hold and lowered its price target to THB21.00 from THB25.00 following disappointing third-quarter results.
The Thai retail company reported core profit of THB1,864 million for the third quarter of 2025, representing a 23% year-over-year decline and a 19% drop quarter-over-quarter. These results fell 15% below Bloomberg consensus estimates and 17% below CLSA’s expectations.
CLSA analyst Chalinee Congmuang attributed the underperformance primarily to margin declines, especially at the company’s Lotus’s operations. The downgrade reflects concerns about fragile consumption recovery and intensified competition in the hypermarket sector.
The investment firm cut its 2025-2027 profit estimates for CP Axtra by 9%, 17%, and 16% respectively, noting that hypermarket operators are likely to continue facing high promotional and online-to-offline related expenses.
The new price target of THB21.00 is based on a discounted cash flow valuation, down from the previous target of THB25.00, with the recommendation changing from Outperform to Hold.
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