FREE Stock in Focus: GLO (13 Feb 2017) by Unicapital Securities

PinoyInvestor’s “Stocks in Focus” summarizes our partner brokers’ Fundamental Analysis of a company and explains the rationale for the stock’s long-term Target Price and broker’s recommendation. Learn how you can use this report in the PinoyInvestor guide.

 

UPDATE: When this Stock in Focus report was published, Globe Telecom (GLO) was trading at PHP 1,792.00. Now, almost two weeks later, the stock is trading at PHP 1,831.00 — close to its Target Price of PHP 1,900.00. Rely on top stock brokerage companies in the Philippine to make smart investment decisions. Access more Stock in Focus reports (fundamental analysis) here.

 

Summary of Brokers’ Recommendations for this stock
Stock Code Company Buy Hold Sell Brokers' Average Target Price Closing Price on 6 Feb 2017 Potential Profit % Brokers' Highest Target Price Brokers' Lowest Target Price
GLO Globe Telecom 2 3 0 1935.80 1700.00 13.87% 2020.00 1855.00

 

Our Partner Broker’s Analysis and Opinion
BROKER RECOMMENDATION TARGET PRICE ISSUED ON
Unicapital Securities BUY 1900.00  13 Feb 2017

 

Core income up 6% in 2016 to PHP 16 billion

GLO’s core net income grew to PHP 16 billion for 2016, driven by a 6% growth in services revenues. GLO’s earnings was in-line with our estimate for the year.

Mobile revenues, which accounts for bulk of the service revenues grew 1% to PHP 91.9 billion, while its broadband business remained to be the growth driver. Home broadband surged 28% to PHP 14.5 billion, while corporate data rose 28% to PHP 9.9 billion.

EBITDA meanwhile grew 9% to PHP 49.9 billion, with margins improving to 42% (from 40%). GLO’s mass market continued to grow with its TM brands (+3%) and Globe Postpaid (+1%), but partly offset by the decline in Globe Prepaid (-1%). Operating expenses meanwhile increased 3% to PHP 70 billion mainly driven by increases across all expense line items to support GLO’s push for data network expansion and overall service enhancements.

 

Our Partner Broker’s Recommendation

At PHP 1,750.00 per share, GLO is trading at 13.5x PER for 2017, below its historical average.

We maintain our BUY rating on GLO with a Target Price of PHP 1,900.00 per share.

 

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Unicapital Securities
Unicapital Securities

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