UBS downgrades Thai Oil stock rating to Neutral after 36% rally

Published 19/08/2025, 12:34
UBS downgrades Thai Oil stock rating to Neutral after 36% rally

Investing.com - UBS downgraded Thai Oil (BKK:TOP) (OTC:TOIPY), a $2.17 billion oil and gas company, from Buy to Neutral while raising its price target to THB33.00 from THB32.00 following a significant price rally.

The stock has surged 36% over the past four months, which UBS believes now fully reflects the company’s near-term performance potential, reduced concerns about the Clean Fuel Project development, and expectations for a potential interim dividend announcement. InvestingPro data shows Thai Oil has maintained dividend payments for 21 consecutive years, with a current yield of 3.2%.

UBS forecasts softer momentum for Thai Oil in the third quarter of 2025, citing weaker gross refining margins and a major refinery turnaround that could negatively impact share price sentiment.

The firm has reduced its earnings per share estimates for Thai Oil by 18% for 2025, 6% for 2026, and 2% for 2027 to account for the second-quarter 2025 stock loss and core profit miss.

The slight price target increase from THB32 to THB33 reflects a valuation roll-forward to end-August, according to UBS.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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