Bank of Ayudhya

Bank of Ayudhya Plc (BAY)
 

Although BAY’s 3Q11 results were slightly below our forecast due to higher costs, its net profit still beat consensus. We believe its outlook is still promising despite increasing economic concerns. Net profit was 3% below our forecast but 4% above consensus. The 9M11 net profit forms 75% of our full-year number. Although we revise up its earnings forecasts, we lower our target price (from 2.0x CY11 P/BV to 1.4x CY12) due to a weaker economic outlook. Maintain OUTPERFORM.