Tuas Ltd., the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst James Bales from Morgan Stanley maintained a Buy rating on the stock and has a A$9.50 price target.
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James Bales has given his Buy rating due to a combination of factors including Tuas Ltd.’s strong execution in FY25 and its strategic acquisition of M1. The guidance of over 200,000 subscriber growth and the shift to NPAT profitability are significant indicators of the company’s robust performance. Additionally, the acquisition of M1 is expected to be highly accretive to earnings, with a calculated EPS accretion of over 200% based on FY25 figures.
Furthermore, the anticipated synergies from the acquisition, such as cost reductions and improved market positioning, are expected to enhance Tuas Ltd.’s financial performance. The consolidation of the Singapore mobile market from four to three players, with Tuas moving to the second position, presents an opportunity for increased market share and economies of scale. These factors, combined with a disciplined approach to capital allocation and a focus on sustained organic growth, underpin the positive outlook for Tuas Ltd.’s stock.