{"id":331814,"date":"2025-03-07T00:36:07","date_gmt":"2025-03-06T16:36:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331814"},"modified":"2025-03-07T00:36:09","modified_gmt":"2025-03-06T16:36:09","slug":"stock-in-focus-pldt-inc-tel-7-march-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-pldt-inc-tel-7-march-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: PLDT, Inc. (TEL) – 7 March 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>TEL<\/td><\/tr>
Company Name<\/strong><\/td>PLDT, Inc. (TEL)<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 March 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1,740.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain our buy recommendation with a Target Price of 1,740 per share. The upward revision in our valuation was mainly driven by TEL\u2019s capitalization on a data-driven market, with its extensive reach and market share partnered with increasing demand for data and traffic. Moreover, the growth in ICT space would likely buoy TEL’s overall performance amid growing digital ecosystem.<\/p>\n\n\n\n

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

PLDT Inc. (TEL)\u2019s performance in 2024 reflected steady growth and resilience, backed by strong demand for data and broadband services. Revenues rose +2% year-on-year (y\/y) to P194.7 billion, with data now making up 83% of total revenues. Cost discipline supported profitability, driving a +4% increase in EBITDA while keeping margins steady at 52% despite inflationary pressures.<\/p>\n\n\n\n

Net income surged +21% y\/y to P32.3 billion, highlighting improved efficiencies. However, legacy services continued to drag overall growth as mobile and fixed-line voice revenues declined amid the ongoing shift to data-driven services.<\/p>\n\n\n\n

TEL\u2019s ARPU trends highlight its strategic pivot toward higher-value digital services. While postpaid remains stable and prepaid faces competition, broadband ARPU stays strong, and enterprise ARPU is poised for further growth with rising ICT and cloud demand. With data and broadband driving 83% of revenues, TEL\u2019s focus on premium plans and digital solutions is expected to sustain revenue resilience and offset mobile segment pressures. <\/p>\n\n\n\n

Meanwhile, improved subscriber retention\u2014reflected in lower churn rates for Smart Prepaid (2.2% from 2.6%), TNT (2.0% from 2.8%), and Postpaid (1.1% from 1.4%) in 2024\u2014can be attributed to TEL\u2019s eSIM adoption, digital SIM delivery, and the SIM Registration Act, which streamlined the subscriber base and enhanced engagement. With continued network investments and expanding digital offerings, TEL is well-positioned to sustain lower churn levels and drive long-term revenue stability.<\/p>\n\n\n\n

Looking over TEL\u2019s capital investment plans, the company spent P78.2 billion in capex for 2024, down from P85.1bn in the previous year, as it shifted toward more efficient spending while sustaining network expansion. Investments focused on LTE\/5G, fiber, AI-driven upgrades, and submarine cables. For 2025, TEL targets a capex range of P68-73 billion, prioritizing cost efficiency while ensuring service quality.<\/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>