PHI - PLDT Inc. Struggling To Get Traction

2024-02-10 03:32:31 ET

Summary

• Inflation in the Philippines has improved significantly, which is positive for PLDT's profitability.
• The company is struggling with declining volumes and stagnant average revenue per user (ARPU), impacting its core business.
• My updated DCF, taking into account the ongoing struggles in the core business and possible scenarios for new business growth, sets a price target of $17—a 27% downside from current.
• The dividend is also at a high risk of being cut.

I am updating my previous analysis on PLDT Inc. (PHI) in light of updated news on inflation and two-quarters of SIM card regulations impacting the company....

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