Alerts
AC rating changed to BUY
Richard Lañeda, CFA
BUY with FV estimates of PHP904- May 15, 2023 We are adjusting our FV estimate for AC from Php907.00 to Php904.00 as we factor in lower stake in ACEN as a result of the property dividend. This was slightly offset by the increase in ACEN’s fair value estimate from Php6.22 to Php6.45. We are maintain our BUY rating on AC as shares are priced attractively with a 35.6% upside to our new fair value estimate of Php904.00
AC Rating 2 years ago
TEL rating changed to BUY
Carlos Matthew De Leon
May 15, 2023. We currently have a BUY rating on TEL with a FV estimate of Php1,760/sh. We continue to like TEL for its leadership in the home broadband space and its position to capitalize on demand from the enterprise segment. Moreover, valuations are attractive. At current prices, TEL is trading at 4.7x 2023E EV/EBITDA, below its 5-year historical average of 5.6x. However, sentiment could stay negative in the near term due to uncertainty regarding the number of mobile subscribers that will register their SIM cards and remain active once the deadline of SIM registrations arrive.
TEL Rating 2 years ago
SM rating changed to BUY
Richard Lañeda, CFA
May 15, 2023. We are raising our FV estimate for SM from Php1,059.00 to Php1,100.00 as we factor in higher valuations estimates for SM Retail, SMPH, and BDO. Our valuation for SM Retail was raised following the higher net income forecast as we value SM Retail using 25x forward P/E. We also recently raised the fair value estimates of SMPH, from Php40.50 to Php41.90, and of BDO from Php133.00 to Php149.00.
SM Rating 2 years ago
SMPH rating changed to BUY
Richard Lañeda, CFA
May 15, 2023. We are raising our fair value estimate for SMPH from Php40.50 to Php41.90 following the increase in our net income forecast for FY23 and FY24. This was slightly offset by factoring in higher net-debt figure for SMPH. We maintain our BUY rating on SMPH for its dominance in the mall segment, which has capitalized on the strength of the consumer sector. The mall segment has so far been very resilient in the face of higher interest rates and high inflation and that is why we prefer mall operators over residential developers.
SMPH Rating 2 years ago
GMA7 rating changed to BUY
Carlos Matthew De Leon
Maintaining BUY- May 15, 2023 Despite the downward adjustments, we are maintaining our BUY rating on GMA7 with a new FV estimate of Php12.2/sh. We continue to like GMA7 for its strong financial position and efficient operations. its dominance in the free-to-air space, which allows it to capture advertising placement revenues for both television and radio broadcasts.
GMA7 Rating 2 years ago
BPI rating changed to BUY
Charles William Ang, CFA
May 12, 2023. In light of the changes to our earnings forecast, we are increasing our FV estimate for BPI to Php122.00/sh, based on 1.55x 2023E P/BV. Hence, we are upgrading our rating to BUY. We like BPI as we expect the bank to see sustained loan growth as the economy continues to recover. Furthermore, the bank is also one of the major beneficiaries of elevated interest rates, given its substantial low-cost deposit base. BPI’s upcoming merger with Robinsons Bank Corporate (RBC) will also allow it to build new synergies with the Gokongwei group, thereby providing opportunities to further expand its business.
BPI Rating 2 years ago
DNL rating changed to BUY
Denise Joaquin
May 11, 2023. We will be reviewing our estimates in light of the weak 1Q23 results. Currently, we have a BUY rating on DNL with an FV estimate of Php11.4/sh.
DNL Rating 2 years ago
UBP rating changed to HOLD
Charles William Ang, CFA
May 11, 2023. Considering the changes in our net income forecasts, we are decreasing our FV estimate by 2% to Php70.0/sh, based on 1.5x 2023E P/BV ex-goodwill (or 0.95x 2023E P/BV inclusive of goodwill). We are also maintaining our HOLD rating as upside to our target price remains limited. Moving forward, we expect the bank’s loan growth to continue amid the country’s economic recovery. UBP’s acquisition of the Citi business should also provide the bank with opportunities to widen its client base and cross-sell its products.
UBP Rating 2 years ago
DMC rating changed to BUY
George Ching
May 11, 2023. We have a BUY rating on DMC with a FV estimate of Php15.2/sh. We are maintaining our BUY rating on DMC. DMC is trading at FY23 P/E of 4.4X, below its historical P/E of 11.2X. Based on its actual 2023 cash dividend of Php0.72/sh, this provides a very high dividend yield of 7.1%. Upside to our FV estimate is also very high at 61%.
DMC Rating 2 years ago
HOME rating changed to BUY
Denise Joaquin
May 10, 2023. We maintain our BUY rating on HOME with an FV estimate of Php6.0/sh. We continue to like HOME for its long-term store network expansion strategy and initiatives for margin enhancement. At its current price, we estimate that HOME is trading at only 5.3X 2023E P/E and upside relative to our FV estimate remains significant. Note, however, that sentiment on the stock could remain weak as a visible recovery in topline has yet to materialize.
HOME Rating 2 years ago