TSX runs higher on rate cut expectations
On Tuesday, Morgan Stanley (NYSE:MS) analysts upgraded Asset World Corp PCL (AWC:TB) stock from Underweight to Equalweight. The analysts adjusted their price target to THB2.00 from THB2.60, reflecting a 23% reduction. This change follows the release of the company’s first-quarter results for 2025 and updates to the hotel opening pipeline.
The analysts revised their earnings per share forecasts for the years 2025, 2026, and 2027 by +1%, -6%, and -9%, respectively. These adjustments were made after considering the latest reported data and market conditions. The price target adjustment was influenced by a wider discount applied to Asset World’s Revalued Net Asset Value (RNAV), now at 50% compared to the previous 35%.
A key factor in the revised outlook is the deteriorating demand forecast for Thailand’s tourism sector. The Tourism Authority of Thailand (TAT) recently lowered its 2025 foreign visitor arrival growth target to approximately 0%, down from an earlier estimate of around 10%, due to reduced tourist volumes from China.
Additionally, Morgan Stanley analysts adjusted their bear case value for Asset World stock, reducing it by 25% to account for longer-term risks. Conversely, the bull case value experienced a 5% increase, reflecting an upward revision in the RNAV.
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