UBS Upgrades Thailand to ‘Neutral’ amid Improving Momentum in Tourism and Gov’t Spending

UBS revised Thailand’s ratings from Underweight to Neutral, as the underperformance of the Thai stock market for the last 18 months made its valuations affordable.

The firm noted that Thailand had been one of the worst performers in Asia in the last 18-24 months, with modest domestic demand and slower than expected recovery of tourist arrivals, while delays in the government budget were also a drag to the market.

However, UBS saw improving momentum in tourist arrivals, notably from China, and noticed opportunities for re-rating in the future following the recent budget approval.

Due to the market’s subpar performance, valuations have become less demanding. This led UBS to upgrade Thailand’s ratings from Underweight to Neutral, as the firm considered the current risk-reward is balanced.

As a result, UBS revised recommendations for 10 Thai stocks to ‘Buy’ in the last three months, including PTTEP (TP 169), CPAXT (TP 40), TRUE (TP 9.90), KTB (TP 19), BH (TP 280), GPSC (TP 62.10), SCGP (TP 39), BGRIM (TP 35.70), TIDLOR (TP 25.30), SAWAD (TP 45).