Analysts See Short-term Impact from Delaying Vaccine Rollout, Recomm. Healthcare Play

The SET Index on Friday (March 12) stumbled after the Government decided to delay AstraZeneca’s vaccine rollout over blood clot concerns, analysts looked at this issue as a negative sentiment towards the index in the short-term. However, having hopes for further Covid-19 restrictions easing as it will be discussed at the CCSA’s meeting on March 19.

 

Analysts maintain healthcare-tourism play as an investment theme, recommending AOT, BDMS and CHG, while picking JMART as a red-hot stock. In addition, analysts expect the SET to move within the range 1,550-1,560 points this week.

 

Capital Nomura Securities (CNS) stated that the pause of using AstraZeneca’s coronavirus vaccine in Thailand after Denmark and several European countries have suspended it over blood clot fears, has provided only a slight negative sentiment to stocks in the healthcare sector in the short-term as country reopening on Oct 1, 2021 could be delayed. 

 

However, CNS still recommends healthcare play as the healthcare industry’s profits in 2021 are forecast to grow 40% YoY which is in line with large private hospitals recovery. The healthcare sector will also profit off Covid-19 vaccination campaign after the Government allowed private hospitals to import vaccines, and lockdown restrictions eased.

 

CNS has given a “BUY” recommendation on BDMS with a target price of ฿24.70/share and CHG with a target price of ฿3.06/share.

 

Meanwhile, Maybank Kim Eng (Maybank) had not given much weight on this issue, however, it could be negative towards investors’ confidence in the near term, seeing that overall, there is a chance of profit-taking on reopening stock play.  

 

Maybank expected the SET Index to move within the range 1,550-1,560 points this week with a possibility to challenge 1,600 points due to a pressure from profit-taking, suggesting 4 red-hot stocks including AOT, IRPC, PTTGC and JMART.