DBS Vickers Securities raised its price target on shares of hotelier Central Plaza Hotel Pcl to 19.6 baht from 15.2 baht, citing an upbeat outlook for the hotel business for the second half.
The broker maintained its 'buy' rating on the stock.
Central Plaza shares were trading unchanged at 15.8 baht. The stock has risen 26.4 percent since July, outperforming a modest 1.8 percent gain in the broader stock market.
Average hotel occupancy rate was 65 percent in the second quarter (April-June), up from last year's 58 percent, and the hotel industry, hit by last year's flooding, would continue to improve, it said.
"The outlook for the second half appears favourable as the occupancy rate remained strong at 67 percent in July compared to 65 percent of last year's," the broker said in a report.
The broker raised its net profit forecast for 2012 and 2013 by 30 percent and 17 percent, respectively.
1028 (0328 GMT)
($1 = 31.47 baht) (Reporting by Viparat Jantraprap in Bangkok; firstname.lastname@example.org)