{"id":331058,"date":"2025-01-08T12:29:18","date_gmt":"2025-01-08T04:29:18","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331058"},"modified":"2025-01-08T12:29:21","modified_gmt":"2025-01-08T04:29:21","slug":"stock-in-focus-manila-electric-co-meralco-mer-8-jan-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-manila-electric-co-meralco-mer-8-jan-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Manila Electric Co. – Meralco (MER) – 8 Jan 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MER<\/td><\/tr>
Company Name<\/strong><\/td>Manila Electric Co. (Meralco)<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>8 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 563.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our BUY rating on MER with a Target Price of P563.00.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Growth in 2024 energy sold is expected at 6.3%<\/strong><\/p>\n\n\n\n

Meralco expects to report a slightly faster 2024 energy sold growth at 6.3% versus our previous forecast of 5.9%. We already matched our estimates with its guidance, making us more comfortable to highlight our BUY rating. We believe Meralco will reap solid benefits as it moves forward, leading us to anticipate additional capacity and forecast 2025\/2026 earnings growth at 8%\/16%. We also consider it one of the most resilient against higher inflation and delayed rate cuts as energy demand remains inelastic.<\/p>\n\n\n\n

MTerra Solar construction in full swing<\/strong><\/p>\n\n\n\n

MGen says that MTerra Solar\u2019s construction is still within schedule, as it targets to complete Phase 1 by February 2026 and bring Phase 2 online by February 2027. The power generation subsidiary has signed all the EPC (engineering, procurement, and construction) contracts, and work for the solar farm and battery energy storage system (BESS) has started.<\/p>\n\n\n\n

Looking forward to the inclusion of gas plants<\/strong><\/p>\n\n\n\n

Apart from MTerra Solar, MGen through its joint venture with Aboitiz Group, seeks on securing a financial close on the acquisition of the Batangas gas plants and gas terminal of San Miguel Global Power Holdings, Inc. This has already been approved by the Philippine Competition Commission (PCC).<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>