Morgan Stanley analyst Joseph Michael has maintained their bullish stance on TUA stock, giving a Buy rating yesterday.
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Joseph Michael’s rating is based on Tuas Ltd.’s impressive financial performance and growth potential. The company reported a significant revenue increase of 34% year-over-year, reaching S$73 million, and an EBITDA growth of 48%, which exceeded Morgan Stanley’s estimates. This growth is driven by the company’s expanding mobile subscriber base, even amid intense competition, and the potential for further market penetration in the Johor-Singapore Special Economic Zone and other data-only segments.
Additionally, Tuas Ltd.’s entry into the broadband market shows promise, with a competitive 10Gbps fiber broadband plan that is priced significantly lower than competitors, potentially capturing more market share. The company’s efficient cost structure, digital-led sales strategy, and favorable working capital conditions contribute to a positive free cash flow outlook. These factors, combined with the expectation of continued revenue growth and margin expansion, underpin Joseph Michael’s Buy rating and the upward revision of the price target to A$7.00 per share.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a A$7.10 price target.