Krungsri Securities (KSS) has reiterated its ‘Buy’ call on Bangkok Expressway and Metro Public Company Limited (SET: BEM) with a target price of THB 8.20 per share, citing robust traffic growth driven by Thailand’s tourism revival—despite risks from ongoing global conflicts.
According to monthly data released by BEM for February 2026, both road and rail sectors showed marked improvement. Average daily road traffic reached 1.14 million trips, up 3% month-on-month and 2% year-on-year. Rail usage recorded an even sharper jump, with average daily trips soaring to 472,000, a 7.7% increase month-on-month and 2.5% rise year-on-year.
Notably, this is the highest monthly rail traffic since commercial subway operations began in 2004. Krungsri attributes these gains primarily to the strong resurgence in tourist arrivals, which especially benefited metro rail volumes.
Evaluating BEM’s performance for the first two months of 1Q26, KSS noted continued momentum: average road traffic stood at 1.13 million trips per day, rising 1.6% year-on-year and 0.3% quarter-on-quarter, and rail averaged 455,800 trips per day, increasing 0.9% year-on-year and 2.9% quarter-on-quarter.
Nevertheless, the ongoing war between the U.S. and Iran, as cited by KSS, poses uncertainty for future inbound tourism and transport activity. As a result, the analyst has adopted a cautious stance for 2026, forecasting flat growth for toll roads and 3% growth for rail.
Overall, BEM is expected to deliver 3.4% year-on-year earnings growth in 2026, a notable improvement from a flat forecast in 2025, while overall revenue growth is forecast at 0.2%.
Krungsri highlights BEM’s attractive valuation, currently trading below pre-pandemic levels, even though projected 2026 earnings significantly exceed those reported in 2020-22. BEM’s current market price does not reflect the additional value created by new assets—the Blue Line extension and the Orange Line—suggesting significant upside potential.
Meanwhile, the recent share price pullback, triggered by rising geopolitical tensions, presents a buying opportunity for investors, as noted by the brokerage firm.
