Bargain hunters sharpening their knives in hopes Thailand's military coup will bring buying opportunities should put the silverware away, Goldman Sachs said in a note.
"Although political unrest has occurred on a number of occasions in the past, this looks to be the first time in the past decade when politics is having a material negative impact on the profit outlook," Goldman said in a note Sunday.
"Valuations are no longer attractive, and after the recent multiple expansion, the market may become more vulnerable to earnings pressure," it said, keeping an Underweight call on the market.
After more than six months of political protests and two days of martial law, Thailand's army chief General Prayuth Chan-ocha declared the military had seized power in a coup late Thursday. The country has faced 19 military coups, 12 successful, since it became a constitutional monarchy in 1932.
While Thailand's stock market has generally posted solid recoveries after previous coups, this time consensus earnings have been cut by around 10 percent over the past two months, compared with generally resilient projections during past unrest, Goldman noted.