BA Surges 6%, Analyst Upgrades TP to ฿11.2 as Recovery Shows Signs in 4Q21

The share price of Bangkok Airways Public Company Limited (BA) rose ฿0.60/share or 6.32% to ฿10.10/share at the closing on August 18, 2021, with a trading value of 65 million baht.

Bualuang Securities forecast that BA will continue to record loss in 3Q21, the loss perhaps lasting until the first half of 2022, due to the lockdown measures and travel restrictions imposed. However, loss is expected to decline from 4Q21 onwards.

Bualuang revised its core loss forecast for 2021 by 11%, 2022 by 41%, and 2023 earnings forecast by 50%, based on the assumption that Samui airport will resume normal operations in 2023. As a result, Bualuang increased its target price on BA to 11.20 baht (from 7.20 baht).

Additionally, according to Bualuang, terminating the leasing arrangement with Samui Airport Property Fund (Leasehold) (SPF) will benefit BA in the long run. Effective vaccination distribution and relaxation of lockdown measures should also benefit airline stocks. As a result, Bualuang upgraded its recommendation from “HOLD” to “BUY“.