Analysts are bullish on the consumer sector
Analysts have been bullish on consumer sector stocks on prospects of growth in consumer spending in ASEAN countries. Mixo Das, an analyst with Nomura, a Japanese securities company, expects consumer spending in five of the largest ASEAN economies to grow to $1.8 trillion from the current $1.2 trillion in the next three years. Analysts’ estimates tend to drive short-term movements of stocks. Historically, news of upgrades have led to upward price movements and downgrades lead to short-term correction in stocks. Hence, investors track analysts’ ratings closely when taking positions in stocks.
Changes in ratings and estimates guide investors towards what markets are expecting from a particular company. Additionally, target prices give them an estimate of the upside potential of a stock.
The table above lists the ratings and 12-month target prices of some consumer stocks in these countries.
Analysts are most bullish on CP All (CPALL), Thai Union (TU) and Sumber Alfaria (AMRT) as these stocks have received nearly 80% buy ratings, and nearly no sell ratings. Sumber Alfaria has a consensus target price of 703.75, resulting in a return potential of 29% over the next 12 months, highest among its peers.
Analysts are most bearish on Robinsons Retail (RRETY) as 5 analysts have rated it sell. The stock has received 15 buy recommendations and 3 hold recommendations. With a target price of PHP 68, it has a return potential of 10% over the next 12 months.
However, they expect stocks of GD Express (0078)and Mayora Indah (MYOR) to correct by 8% and 3% respectively in the next one year. These stocks have received 50% and 63% buy recommendations from analysts.