TPG Telecom Limited (AU:TPG) and Qantas Airways (AU:QAN) have been trending in the Australian market in the last week.
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Both companies have posted record numbers in their recently declared results. This has boosted analysts’ confidence in these companies as well as their stock prices.
The TipRanks Trending Stocks tool is a perfect way to screen for stocks that have been recently rated by analysts. Investors can screen for stocks from seven different markets and conduct further research to make an informed decision.
Let’s have a look at these companies in detail.
TPG Telecom Limited
TPG (formerly Vodafone Hutchison) is among the leading telecommunications companies in Australia, providing fixed and mobile networks.
On Monday, the company announced its 2022 annual results, sending the stock up by around 5%. For the full year, the company’s revenues grew by 1.5% to $4.4 billion as compared to 2021. The net profit after tax jumped by a huge 350% to $513 million, up from $113 million in 2021. TPG witnessed a growth of 300,000 mobile subscribers, which ended at 5.28 billion subscribers at the end of 2022.
Moving forward in 2023, the company is targeting an EBITDA of between $1.85 billion and $1.95 billion.
Overall, the stock has been having a tough time since the merger of Vodafone Australia and TPG in 2020. It has been trading down by more than 20% in the last three years. However, analysts are bullish on the potential upside based on positive earnings, 5G rollout, and subscribers growth.
TPG Share Price Forecast
Overall, TPG stock has a Moderate Buy rating on TipRanks, with an average target price of AU$6.04. This suggests an upside of 22.3% on the current trading price.
Qantas Airways Limited
Qantas Airways is the largest airline in Australia and operates in around 36 countries worldwide.
With the revival in global travel demand and its restructuring program, the company saw a turnaround in its numbers. In its recently released results for H1 2023, the company posted a profit before tax of $1.43 billion, as compared to a loss of $1.2 billion in the same period a year ago. The revenues also grew by more than 100% to $9.9 billion on a strong rebound in passengers and higher pricing.
For the full year 2023, the company expects passenger demand to continue to grow. The company will also reduce the fares slightly; they are currently above pre-pandemic levels.
What is Qantas’ Share Price Target?
According to TipRanks, QAN stock has a Strong Buy rating, based on six Buy, and two Hold recommendations.
The stock has an average target price of AU$7.51, which is 15.5% higher than the current price.
Ending Thoughts
Analysts have rated both TPG and QAN as Buys based on their solid results and future prospects.
TPG enjoys a dominant position in the industry, and analysts are bullish on higher subscriber growth and earnings momentum.
For QAN, the travel boom will drive more revenue and earnings for the company. The company’s efforts to streamline its operations have resulted in strong numbers as passengers return to travel.
