TPM - Credit Suisse rates the stock as Underperform
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Credit Suisse expects the company will be able to achieve its goal of 500,000 mobile subscribers, in order to break even on EBITDA. Its low-price services are expected to have a strong appeal at the low end of the pre-paid and data SIM market, where network quality is not a large consideration.
Nevertheless, the broker struggles to find where the next leg of growth will come from, suspecting 6-7% subscriber share will be difficult. Mobile being an expensive business means the broker finds few shortcuts for success. Underperform retained. Target falls to $5.25 from $5.50.
Sector: Telecommunication Services.
Target price is $5.25.Current Price is $6.06. Difference: ($0.81) - (brackets indicate current price is over target). If TPM meets the Credit Suisse target it will return approximately -15% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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