Analysts continue to express a positive view on shares of CP Axtra Public Company Limited (SET: CPAXT). Analysts from Bualuang Securities revealed that their optimism stems from CPAXT’s consistent profit growth and robust Q1 performance. They recommend a “Buy,” based on expectations that strong earnings growth will persist through 2025. Currently, the shares are trading at a 2025 Price-to-Earnings Ratio (PER) of 21.8 times, which appears attractive when compared to an anticipated average earnings growth rate (CAGR) of around 14% from 2025 to 2027.
Nonetheless, amid ongoing global economic uncertainty, investors have increasingly shown interest in “Recession-Proof Businesses,” or companies able to sustain growth even during economic downturns. CPAXT, operating retail and wholesale businesses under the Makro and Lotus’s brands, stands out as a leading stock within this sector.
According to analysts, CPAXT has three key strengths that make it appealing during volatile economic conditions:
- Essential Goods – Focuses on selling food and daily necessities that consumers consistently repurchase.
- Affordability – Positions its products at accessible price points for both B2C and B2B segments, catering to consumers’ thriftier behaviors.
- Adaptability – Has effectively transitioned to an omni-channel business model, with efficient logistics and digital platform management.
Despite challenges from intense retail competition and pressures on maintaining profit margins, CPAXT has demonstrated adaptability, for instance, by developing high-quality and value-for-money private label and exclusive brand products. This has fostered customer loyalty and expanded sales channels, particularly online, while enhancing supply chain efficiency.
Beyond CPAXT, analysts also recommend other “Recession-Proof” stocks with solid business fundamentals and consistent market demand, including:
- Hospital group: BH (Bumrungrad Hospital), BDMS (Bangkok Dusit Medical Services)
- Retail giants with nationwide reach: CPALL
- Affordable food and beverage brands: OISHI, SAPPE, TACC
- Ready-to-eat food producers: NSL
- Technology and telecommunications: TRUE, ADVANC
Analysts conclude that although the market may face short-term volatility, stocks meeting fundamental consumer needs and exhibiting strong adaptability will remain “safe haven” investments, with the potential to deliver stable long-term returns.
