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Investing.com - JPMorgan has upgraded Ngern Tid Lor PCL (TIDLOR:TB) from Neutral to Overweight and raised its price target to THB22.00 from THB18.00.
The upgrade follows Bank of Ayudhya’s (BAY) acquisition of CVC’s 16.33% stake in the company, which JPMorgan analysts believe removes a key overhang for the stock. As Ngern Tid Lor’s largest and one of its oldest shareholders, BAY ensures strategic continuity for the company.
JPMorgan highlighted Ngern Tid Lor’s position as a top-quality non-banking financial company (NBFC), citing its lowest cost of funds (approximately 120 basis points below peers), visibility on operating leverage gains, highest NPL coverage of 262%, and loan loss reserve to loans ratio of 4.7%.
The firm noted that despite Ngern Tid Lor’s high return on assets of approximately 4.9%, its low leverage of 3.41x compared to competitors limits return on equity to 15-17%. Recent restructuring effectively allows for leverage build-up through potential high loan growth, corporate action, capital management, or a combination of these approaches.
JPMorgan has revised its 2025-27 earnings per share estimates for Ngern Tid Lor by 1-3% and lowered the cost of equity to reflect the removal of the overhang, deriving a June 2026 price target of THB22.
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