Aussie Tuas' new broadband launch may warrant re-rating - Morgan Stanley

Tuas

22/03/2023 04:01

** Brokerage Morgan Stanley says telecom services firm Tuas
Ltd  TUA.AX  may announce a new competitive broadband offering
along with its half-yearly results on Thursday, which will
provide stock price upside 
    ** Tuas, which runs SIMBA Telecom in Singapore, sought for
expressions of interest for a new, competitively priced 
broadband plan, but the firm has not disclosed any further
details 
    ** MS says potential upsides from this launch are not yet
pencilled into the stock price 
    ** A launch would not have much upside to FY23/24 earnings
given an initial ramp-up phase, but would be a cause for
re-rating of the stock, MS says
    ** MS has a A$2.00 price target and 'overweight' rating on
the stock 
    ** TUA last down 1.9% at A$1.275; as of last close, down
2.3% YTD

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))