Citigroup raised its price targets on telecoms companies Advanced Info Service Pcl (AIS) and Total Access Communication Pcl to reflect the potential benefits of 3G licensing.
It raised its price target on AIS to 272 baht from 245 baht and on Total Access to 131 baht from 101 baht.
"This reflects lower revenue share expectations, higher profitability linked to reduced regulatory and concession fees over the long run. Unlike other more developed markets, Thailand is in an excellent position on technology migration," Citigroup said.
Last week, Advanced Info, Total Access and True Corp
submitted applications to join the long-awaited auction for 3G licences. Telecoms regulator National Broadcasting and Telecommunications Commission will name the qualified bidders on Oct. 9.
Advanced Info shares were unchanged at 209 baht, while Total Access shares edged up 0.8 percent to 91.5 baht. The technology subindex was up 0.19 percent and the broader SET index
gained 0.3 percent.
Optimism about 3G licensing has helped send Advanced Info shares 47 percent higher this year and Total Access 31 percent versus a 27.8 percent gain of the SET index.
1505 (0805 GMT) (Reporting by Viparat Jantraprap in Bangkok; firstname.lastname@example.org)
Keywords: MARKETS THAILAND STOCKSNEWS/