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Investing.com - JPMorgan downgraded Ngern Tid Lor PCL (BKK:TIDLOR) from Overweight to Neutral with a price target of THB18.00, citing limited upside potential after recent stock gains.
The Thai financial services company’s stock has risen 14% in the last two weeks, outperforming both the SETBANK index (+3%) and the broader SET index (+9%). This rally was driven by expectations of a dovish Bank of Thailand governor appointment, which was confirmed earlier this week.
JPMorgan identified a potential stake sale by a large shareholder as a key technical overhang for the stock. The firm noted that TIDLOR has re-rated approximately 78% on PE/PB from May lows, which already reflects higher quarter-over-quarter profits expected in Q2, improvements in asset quality, and easing monetary policy.
A key downside risk highlighted by JPMorgan is the potential delay in budget approval or slowdown in fiscal spending over the next six months. Such delays could disproportionately impact debt servicing for Tidlor’s truck loan customers, which represent about 16% of the company’s loan mix.
At current valuations of 10.3x/1.49x 2025 PE/PB for 15% EPS growth and 15% return on equity, JPMorgan considers the stock fairly valued. The firm maintained its earnings estimates and price target for Ngern Tid Lor.
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