UBS has revised its 2026 Thailand’s SET Index target upward by 16% to 1,680 points. According to the global investment bank, the revised base case target is valued at approximately 17.2x next-twelve-months (NTM) price-to-earnings (P/E) ratio based on an NTM earnings per share (EPS) forecast of 97 baht.
Under the bank’s scenario analysis, the bull-case target for the SET Index reaches 1,840 points on an implied P/E of 18.3x, while the bear-case floor is pegged at 1,460 points at an implied P/E of 16.3x.
UBS noted that there remains clear room for consensus EPS upgrades among laggard sectors as global crude oil prices normalize. Furthermore, valuations for the broader market—excluding DELTA—are currently hovering near 10-year lows, offering an attractive entry point for institutional investors as market earnings yield gaps hover around historical averages.
Sector Allocations and Stock Recommendations
UBS has outlined clear sector weightings for investors navigating the market rotation:
- Overweight: Telecom, Commerce, Utilities, and Banking.
- Neutral: Finance, Tourism, Materials, Energy, and Electronics.
- Underweight: Property, Food, Transport, and Healthcare.
Among top equities, UBS highlighted CPALL, CPN, GULF, KTB, PTT, and TRUE as its most preferred stock picks. Conversely, Land and Houses (LH) and PTT Oil and Retail Business (OR) were identified as the least preferred names within the coverage universe.
