Big C Supercentre
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No bargains left on the counter Neutral - downgrade Share price: Bt 159.50 Target price: Bt 150.00
Big C Supercentre Plc (BIGC)
BIGC’s recent rally has priced in the larger-than-expected synergy benefits of the Carrefour acquisition. To advance further with the new platform requires the clearing of some funding hurdles that remain an overhang on the stock. Competition also appears to be intensifying. We downgrade our call from Outperform to Neutral on recent share price gains and the pending rights issue. We will revisit our forecasts once the fund-raising has been cleared. No change to our DCF-based target price (10.8% WACC, 1% LTG).
