Thailand’s CP Axtra PCL (CPAXT) is poised to benefit from a confluence of positive economic factors, according to a new analysis from Land & Houses securities. The firm projects continued profit growth for the retail giant through the fourth quarter of 2024 and into early 2025, driven by peak season spending, the “People Half Plus” stimulus program, and anticipated economic activity surrounding February’s parliamentary elections. Analysts have issued a ‘buy’ recommendation for the stock, signaling confidence in it’s potential for investor returns amidst broader economic tailwinds.
Analysts at Land & Houses Securities (CPAXT) predict continued profit growth for the fourth quarter of 2024, with earnings expected to remain stable year-over-year. The forecast is driven by seasonal factors, as Thailand enters the peak season for both consumer spending and tourism. The firm also anticipates a positive impact from the ongoing “People Half Plus” stimulus program, which is expected to boost sales and same-store sales growth (SSSG) for Macro.
Looking ahead to the first quarter of 2025, CPAXT projects further profit gains, fueled by increasing consumer confidence and economic activity surrounding the upcoming parliamentary elections. The Election Commission of Thailand has announced that elections will be held in February 2025, and the resulting campaign spending is expected to inject further capital into the economy.
The brokerage firm has issued a ‘buy’ recommendation for the stock, with a price target of 21.40 baht. This suggests potential for investor returns as the company benefits from both consumer-driven growth and the broader economic impact of the election cycle. The analysis underscores the interconnectedness of Thailand’s economic sectors and the potential for positive feedback loops during periods of heightened activity.
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