The share price of Kasikornbank Public Company Limited (SET: KBANK) continued to rise on Friday and closed at Bt168.00 per share. KBANK is the best performer among Thai commercial banks in the past five days with a gain of 10.63%.
At the closing price of yesterday’s session, KBANK’s Relative Strength Index (simple) 14 days just hit the roof of 100% at the closing price of Bt168.00 per share. KBANK has a 5-day SMA of Bt157.50.
KBANK has been one of the most recommended stocks by analysts following the economic recovery and the rate-hike trends. The last 16 analysts that release their research on KBANK were all giving buy recommendations with the highest target price at Bt180 per share, while the consensus target price is Bt175.10 per share.
FSS International Investment Advisory (FSSIA) expected KBANK’s 2022 net profit to increase by 9% y-y, supported by three factors. First, FSSIA forecast its fee income to increase following an economic recovery. Second, KBANK’s NII is expected to rise gradually following a rise in its loan volume.
Although FSSIA said that it expected KBANK to offer debt restructuring to its Covid-affected clients, its NIM should be partially offset by a rise in its high-yield retail lending. Thus, FSSIA expected KBANK’s NIM to decline by only 10 bps y-y in 2022. Lastly, with successful debt restructuring, FSSIA believed KBANK’s credit cost will decline to 160 bps in 2022 vs 173 bps in 2021. FSSIA gave a buy recommendation on KBANK with a target price at Bt180 per share.
Country Group Securities (CGS) reiterated its buy rating on KBANK with a new target price of Bt174 per share, reflecting 1) steady growth ahead from improving economic recovery, 2) adequate reserves against new NPLs, and 3) compelling valuation.
