TPG – Macquarie rates the stock as Outperform

The TPG Telecom trading update was in line with Macquarie’s expectations, with up-sellling opportunities in consumer and enterprise encouraging, albeit at an early stage.

While the company would not comment on the intentions of major shareholders, the broker believes JVCo (Vodafone/Hutchison), a holder of 28%, is unlikely to be a seller below $7.72, given the amount of debt inherited from the merger of Vodafone Australia and TPG Telecom.

Macquarie retains an Outperform rating and lowers the target to $7.50 from $8.00.

Sector: 0.

 

Target price is $7.50.Current Price is $5.86. Difference: $1.64 – (brackets indicate current price is over target). If TPG meets the Macquarie target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →