He set a price target of P1,618 per share, citing undervaluation and robust cash flow. This suggests an upside of 20 percent when the report was released last Feb 3.
PLDT, or TEL, trades at 9.2 times its expected 2025 earnings, lower than its five-year average and industry peers, making it an attractive investment.
The company’s cash flow turnaround is a major strength, driven by asset sales and lower debt, allowing for higher dividends beyond its 60 percent payout policy.
"TEL’s strategy of letting go of cost-heavy operations to make way for better cash flow and lower net debt has contributed to its quick turnaround, enabling the company to return to being cash flow positive after only one year,” Ramirez said.
“These seemingly small moves could have significant effects on TEL’s future performance, as having more available cash and lower debt gives the company more financial muscle to improve profitability, weather unexpected downturns, and take advantage of opportunities that may arise,” he added.
Digital bank Maya is nearing profitability, with AP Securities stating it could reach a valuation of about $3 billion.
However, competition is intensifying—DITO and Converge are aggressively expanding, challenging TEL in mobile and broadband. Additionally, voice revenue is shrinking as users shift to internet-based calls, putting pressure on TEL to adapt.
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