Morgan Stanley raises target price for Australia's Tuas on upside from M1 deal

Keppel

04/09/2025 05:41

** Morgan Stanley raises PT for telecom company Tuas TUA.AX to A$9.50 from A$7.00, rates it "overweight"

** TUA said in Aug it will acquire telecom ops of Singapore's M1 - a unit of Keppel KPLM.SI - for an enterprise value of S$1.43 bln ($1.11 bln)

** Brokerage expects lower operating expenses, moderate capital expenditure and improved revenue as synergies from the deal

** Brokerage expects TUA to maintain M1's higher price points, while improving market share with higher product value at constant pricing

** Morgan Stanley sees over 200% EPS accretion on FY25 stand-alone EPS

** Stock up 0.4% to A$7.55, bringing YTD gains to 18.8%

($1 = 1.2827 Singapore dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))