Analysts have been upgrading the target price of Advanced Info Service Public Company Limited (SET: ADVANC) after the company reported strong profit growth in its 2Q23 earnings that topped THB7,000 million.
Top global investment banks such as JPMorgan and Morgan Stanley upgraded ADVANC’s target price to THB258 and THB250 per share, respectively, from THB235 and THB240 per share, respectively. RHB Research raised the target to THB252 from THB233 per share.
Thai brokerage firms also revised their target price as well. Innovest X Securities upgraded the target price to THB245 from THB225 per share, while Kasikorn Securities raised the price to THB240.57 from THB233.85 a piece. Bualuang Securities recommended the highest target price at THB265 per share.
All maintained their ‘BUY’ and ‘Outperform’ outlook.
Innovest X wrote in a research paper stating that ADVANC reported 2Q23 results that lined up with INVX and consensus. The biggest development in the quarter was a QoQ improvement in mobile and FBB ARPU, indicating cooling competition, which we expect to continue in 2H23. Cost controls also gave a boost to profitability. We maintain our OUTPERFORM and roll our valuation base to 2024, which raised our DCF-based TP (6% WACC and 2% LTG) to Bt245 (from Bt225).
Bualuang Securities (BLS) stated that it expects ADVANC to record THB 7,035 million of net profit in 3Q23 (+12% YoY, stable QoQ), boosted by core revenue in mobile and FBB segments. More importantly, rising ARPU will offset the decline in users.
