Credit Suisse Expects SET at 1,660pts in 2021, Driving by Banking-PetChem-Tourism Stocks

Credit Suisse (CS) expected SET Index to reach 1,660 points in 2021, giving an “Overweight” in banking, petrochemical, hospitality, tourism and retail sectors, while picking AOT, BBL, BDMS, CENTEL, CHG, CPALL, CRC, IVL, KBANK, SAWAD and SPRC as its top picks.

 

As a global wealth manager, investment bank and financial services firm, Credit Suisse expected Asian stocks to outperform global markets next year, supported by an “earning super-cycle” to be kicking off across the region.

Amid a recovery from global plummet, CS forecasted MSCI Asia excluding Japan to see 19% returns in U.S. dollars, compared to 15% globally.

The analyst from CS saw EPS growth in Asia that could be in the “teens” for at least three to five years. Factors such as stabilizing economic growth and reduced tax pressure will be the main drivers for the growth in this region, stated CS.

Currently, Asian stocks are still under-owned by foreign investors, thus, improving exports and appreciating currencies will also support the market in Asia as well.

 

Amid countries in Asia, Credit Suisse stated that Thailand has the best potential turnaround story in Asia, especially in the second half of 2021.

In the analysis, Credit Suisse has upgraded some of Thai stocks that the bank sees potential growth.

Aeon Thana Sinsap (Thailand) Public Company Limited (AEONTS)’s target price increased from ฿125.00/share to ฿154.00/share, while maintaining “Neutral” recommendation.

Muangthai Capital Public Company Limited (MTC)’s target price increased from ฿54.50/share to ฿63.00/share, while maintaining “Neutral” recommendation.

Bangkok Expressway and Metro Public Company Limited (BEM)’s target price increased from ฿7.90/share to ฿9.00/share, while maintaining “Underperform” recommendation.

Srisawad Corporation Public Company Limited (SAWAD)’s target price increased from ฿66.00/share to ฿75.00/share, while maintaining “Outperform” recommendation.

VGI Public Company Limited (VGI)’s target price increased from ฿8.40/share to ฿9.00/share, while maintaining “Outperform” recommendation.

Krungthai Card Public Company Limited (KTC)’s target price increased from ฿19.00/share to ฿32.00/share, while maintaining “Underperform” recommendation.

BEC World Public Company Limited (BEC)’s target price increased from ฿5.00/share to ฿6.40/share, while maintaining “Neutral” recommendation.

BTS Group Holdings Public Company Limited (BTS)’s target price increased from ฿10.40/share to ฿12.00/share, while upgrading recommendation from “Underperform” to “Outperform”.