Citi cuts TMB Bank rating to "sell", lowers target price to 1.2 baht

BANGKOK: Citigroup has downgraded its rating for Thai TMB Bank Pcl to 'sell' from 'buy' and lowered the stock target price to 1.2 baht ($0.039) from 1.55 baht, citing lower-than-expected third-quarter earnings and a weak outlook for loan growth.

The broker cut its earnings per share (EPS) forecast for 2011 and 2012 by 11-23 percent, expecting slower loan growth, lower fee income and rising provisions, it said in a research note dated Oct. 18.

At 0302 GMT, TMB shares were up 1.5 percent at 1.37 baht while the SET index was up 0.5 percent.