Thai Airways

Thai Airways International  Plc (THAI)
 

Piloting an airline has never been tougher. While costs stay elevated, competition is cut-throat and weighs heavily on yields. Despite THAI’s strenuous efforts to engineer a turnaround, we believe it could take a while before the airline’s profitability returns to a respectable level. Our maintained target price, set at 0.65x P/BV and based on FY12F ROE, suggests limited downside to the current share price. That said, until we can identify positive catalysts, the stock remains on our NEUTRAL list.