{"id":331142,"date":"2025-01-15T19:34:44","date_gmt":"2025-01-15T11:34:44","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331142"},"modified":"2025-01-15T19:34:45","modified_gmt":"2025-01-15T11:34:45","slug":"stock-in-focus-globe-telecom-glo-15-jan-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-globe-telecom-glo-15-jan-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Globe Telecom (GLO) – 15 Jan 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>GLO<\/td><\/tr>
Company Name<\/strong><\/td>Globe Telecom<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 January 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 2,689.32<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Even though we are holding off on increasing our Target Price for GLO, we note that the potential upside to our current Target Price is still a very generous 16.9%. On top of that, the telco sector is one of our overweight sectors this year. As such, we reiterate our BUY rating on GLO with a Target Price of P2,689.32 per share.<\/p>\n\n\n\n

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

GCash reportedly gearing up for $8-Billion IPO<\/strong><\/p>\n\n\n\n

InsiderPH reported that PSE President Ramon Monzon is trying to push for a GCash listing this year in an IPO that could potentially value the fintech giant at $8-Billion, which is a huge leap from the latest valuation of $5-Billion when Japanese bank MUFG bought an 8% stake in August 2024. Achieving this valuation would value GLO\u2019s stake in GCash at around P154.5-Billion, or P1,070.17 per GLO common share. For reference, our previous estimate of the value of GLO\u2019s stake in the company is P669.76 per share.<\/p>\n\n\n\n

It’s likely a stretch target<\/strong><\/p>\n\n\n\n

From our previous experience with IPOs, we know that this whopping valuation is likely a stretch target, as the actual IPO valuation is oftentimes significantly lower than what is publicized early in the process. There is also a very high probability that the controlling shareholders of GCash would again choose to delay the listing due to the lack of need for additional funds and less-than-ideal market conditions. With this in mind, we are opting not to bake in this additional valuation into our current fair value estimate for GLO, which still values GCash at $5-Billion.<\/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>