Bank of Ayudhya

Bank of Ayudhya Plc (BAY)  
 

“Make Life Simple” is the tagline BAY uses to market its retail banking services. For us, choosing the stock as our sector pick is also made simple by the decent prospects for the bank’s retail business as well as its solid profitability outlook. BAY stays on our Outperform list. Our target price is still set to 1.8x FY12 P/BV (GGM: 15% ROE, 11.7% COE, 7.5% growth). We expect the bank’s ROE to continue rising, driving a further stock rerating.