On Tuesday at 3:25 PM (Bangkok time), the share price of Krung Thai Bank Public Company Limited (SET: KTB) rose by 3.51% or THB 0.60 to THB 17.70, with a trading value of THB 1.41 billion.
Kasikorn Securities (KS) has designated KTB as its top pick among bank stocks, citing the ongoing positive momentum from the company’s first-half 2024 earnings, the stabilization of non-performing loans (NPL), and an optimistic outlook for the second half of 2024. The bank is poised to benefit from government loans, with public investments in the latter half of the year creating opportunities for loan expansion.
KTB offers an appealing valuation with a P/BV ratio of 0.5x and boasts a ROE of approximately 10%. Consequently, the analyst has recommended a ‘BUY’ rating for KTB, setting a target price of THB 18.70 per share.
Pi Securities has highlighted that KTB stands to gain from government-linked loans, particularly in response to public investment and stimulus initiatives expected in the latter half of 2024. The actions taken by KTB in the second half of the year will result in reduced provisions, thanks to the asset quality management carried out in the first half of 2024.
This move could potentially contribute to the stabilization of non-performing loans (NPL), thereby enhancing the bank’s performance in the latter half of the year. With attractive valuation metrics and a strong track record of dividend payouts, the analyst has issued a ‘BUY’ recommendation for KTB, setting a target price of THB 20 per share.
