Citi cuts Thai Siam Cement target price

Citi cuts Thai Siam Cement target price
Published: 07 November 2011

Citigroup has cut its target price for Thailand’s Siam Cement Pcl (SCC) to THB375 from THB417 but still recommends it as a "buy".

"The share price has corrected by 18 per cent from its three-month peak on 11 August, largely pricing in near-term headwinds including weak integrated chemical spreads and the flood," Citi Investment Research said in a noted dated 4 November.

The broker said it maintained its "buy" rating, expecting a recovery in sales of cement, paper and building materials to support earnings in 2012.

On 26 October Thailand’s biggest industrial conglomerate posted a 12.5 per cent rise in quarterly net profit, helped by a one-off gain from a divestment in its chemicals business.