Top 5 reasons why Morgan Stanley has upgraded Globe to overweight
Global brokerage firm Morgan Stanley has upgraded Globe Telecoms from underweight to overweight, citing expectations of sustained growth amid the Ayala-led firm’s continued massive expansion program.
A stock rating of overweight means that the stock’s total return is expected to exceed the average total return of the Morgan Stanley analyst’s industry (or industry team’s) coverage universe, on a risk-adjusted basis, over the next 12 to 18 months.
In justifying the upgrade, Morgan Stanley said “Globe has been winning market share from competition in the mobile and broadband segments, which has resulted in Globe outperforming competition by six percent in 2017.”
Morgan Stanley likewise cited Globe’s efforts to significantly increase its capex to improve its network.
Globe has earmarked $850 million for the continued expansion of its mobile and fixed broadband networks.
“We see Globe’s effort in driving improvements in the network as a positive for growth,” the Ayala-led telco said.
Apart from this, Morgan Stanley noted Globe’s lower depreciation charges, increases in data monetization and improvement in customer growth.