Morgan Stanley lifts PT on Australia's Tuas on broadband plans

Tuas

24/03/2023 02:36

** Morgan Stanley raises PT on Tuas Ltd  TUA.AX  to A$2.15
from A$2 on co's plans to enter Singapore broadband market
    ** Broker says the Singapore-focused telecom firm's plans of
expansion into broadband sector is interesting and thinks Tuas
can replicate its initial mobile success
    ** Co said on Thursday it targets to make fibre broadband
services available in Singapore by the end of FY23
    ** MS believes co can take broadband market share as its
initial offer is highly competitive at a ~70% discount to peers
and it has over 700,000 mobile subscribers in Singapore to
cross-sell broadband
    ** New PT is at a 58% premium to TUA's last close, MS
retains "overweight" rating
    ** Broker hikes EBITDA view by 11%/8% in FY23/24 on higher
subscribers, margins and inclusion of broadband from FY24
    ** Shares up as much as 11.4% to A$1.515, their biggest
intraday pct gain since Dec 16, 2021
    ** Stock notches highest level since Sept 21
    ** YTD, TUA up 2.3% as of last close

     ($1 = 1.4663 Australian dollars)

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))