PLDT, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Sachin Salgaonkar from Bank of America Securities maintained a Buy rating on the stock and has a $31.10 price target.
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Sachin Salgaonkar has given his Buy rating due to a combination of factors that highlight PLDT’s strategic positioning and financial resilience. Despite facing challenges such as slow revenue growth and cost pressures, PLDT is expected to sustain a healthy EBITDA margin of around 52%. The company is actively pursuing new revenue streams in its mobile and enterprise sectors, alongside a robust broadband business. Efforts to reduce operational expenses through technology and modernization further support this outlook.
Additionally, PLDT’s strategic initiatives, such as the potential sale of data center assets and legacy copper assets, are aimed at reducing debt rather than distributing special dividends. This focus on debt reduction is seen as a prudent financial strategy. The company’s broadband segment has shown impressive growth with minimal impact on average revenue per user, and its mobile segment is stabilizing with a focus on up-selling as 5G adoption increases. These factors collectively contribute to the positive outlook and the Buy rating assigned by Salgaonkar.
PHI’s price has also changed slightly for the past six months – from $20.740 to $19.020, which is a -8.29% drop .