Finansia Syrus Securities has reiterated its “BUY” recommendation on Thai Airways International PCL (SET: THAI), with a target price of THB11.30, despite recent legal setbacks.
The comment came after the Civil Court issued a temporary injunction yesterday, suspending the registration and duties of nine new board members appointed by the latest shareholders’ meeting, highlighting short-term governance risks that have generated negative sentiment for the stock. However, Finansia added that this is not a final verdict, and the current board is expected to remain in place for now.
The brokerage believes that the legal dispute will not directly impact THAI’s core operations or financial position. Routine management remains uninterrupted, supported by recovering aviation industry demand and improved cost management. Finansia Syrus notes that, although THAI shares may experience short-term volatility, operational performance and legal resolution progress will drive medium- to long-term movements. If the legal issue is resolved quickly, the impact on the stock is likely to be temporary rather than fundamental.
Looking ahead, Finansia Syrus expects THAI to return to a net profit in 4Q25 year-on-year, with core profit growth resuming. The airline is also set to benefit in 2026 from three main drivers: expanding its narrow-body fleet from 78 aircraft in 2025 to 93 in 2026, short-term leasing of 7-8 additional wide-body planes to replace retired aircraft and enhance available seat kilometers (ASK) by at least 6%, and sharpening its network strategy for improved competitiveness.
The target price of THB11.30 is based on a 2026 P/E ratio of 10x, in line with the industry average for full-service carriers. Moreover, the free-float is expected to rise to 30% after a six-month lock-up ends on February 4, 2026, compared to the current 6.7%.
