{"id":334997,"date":"2026-06-02T01:52:41","date_gmt":"2026-06-01T17:52:41","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=334997"},"modified":"2026-06-02T01:52:42","modified_gmt":"2026-06-01T17:52:42","slug":"stock-in-focus-pldt-inc-tel-2-june-2026-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-pldt-inc-tel-2-june-2026-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: PLDT, Inc. (TEL) – 2 June 2026 by RCBC Securities"},"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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>2 June 2026<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 1,620.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We maintain our 2027 projections and target price (TP) of PHP1,620.00, however, as we expect these short-term disruptions to be fully absorbed by the end of the fiscal year. At its current share price, the total return potential is at 37.7%, including an attractive 2026 dividend yield of 7.6%.<\/p>\n\n\n\n

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

1Q26 core net income up 1% Y\/Y, in-line<\/strong><\/p>\n\n\n\n

TEL reported a core net income of PHP9.1bn, marking a 2% Y\/Y increase fueled by Maya\u2019s continued contribution to earnings and gains from asset sales. Gross service revenues grew 3% Y\/Y to PHP54.9bn as data and broadband continue to offset declines in legacy services. Consolidated EBITDA increased by 2% Y\/Y to PHP28.3bn driven by prudent cost management. Meanwhile, telco core income declined 2% Y\/Y to PHP8.6bn due to higher depreciation and amortization costs. <\/p>\n\n\n\n

Enterprise continues to drive growth <\/strong><\/p>\n\n\n\n

TEL\u2019s Enterprise segment served as the primary growth driver in 1Q26, posting a 4% Y\/Y increase fueled by a 17% surge in high-value ICT and data center revenues. This performance underscores robust demand for cloud, cybersecurity, and AI solutions, which are being successfully monetized through the company\u2019s \u201cOne Enterprise\u201d model to cross-sell connectivity clients. Furthermore, strong gains in government contracts, cloud productivity, and international accounts continue to offset declines in legacy services.<\/p>\n\n\n\n

Temporary softness in Consumer<\/strong><\/p>\n\n\n\n

TEL\u2019s consumer segments faced minor topline pressure in 1Q26, with Home revenues falling 1% Y\/Y as Fiber net adds slowed to 44k (-56% Y\/Y, -65% Q\/Q) due to installation bottlenecks from a major OSS platform migration, while Wireless Consumer revenues similarly dipped 1% as inflation and tighter wallets led subscribers to stretch mobile loads or shift to home Wi-Fi. Despite these headwinds, underlying demand remained resilient: Home ARPU was temporarily diluted by typhoon-related relief and a higher mix of easier-to-activate Prepaid Fiber accounts, but management expects a 2Q26 recovery as installation throughput normalizes. Meanwhile, TEL continues to counteract macroeconomic pressure through dynamic pricing and hyper-personalized offers designed to optimize monetization across its user base.<\/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>