Weaker earnings and a softer economy have forced AP Securities (APS) to cut its year-end 2025 target for the Philippine Stock Exchange index (PSEi) to 7,212.32, down from 7,546.
The downgrade reflects moderate earnings growth this year of 8.4 percent and an expected price-to-earnings (P/E) ratio of 11.7 times, according to the stockbrokerage house, whose research team is led by Alfred Benjamin R. Garcia.
The price-to-earnings (P/E) ratio compares a company’s stock price to its earnings. It helps investors judge whether a stock, or the overall marke, is cheap, fairly valued, or expensive.
Despite the revision, the index still offers a 14.2 percent upside from its August 15 close of 6,248.75, signaling potential gains if corporate profits rebound.
APS also sees brighter prospects for 2026, raising its target to 8,324.65 on expectations of 8.7 percent earnings growth and a 12.4x P/E ratio, implying an almost 32 percent upside.
The price-to-earnings (P/E) ratio compares a company’s stock price to its earnings. It helps investors judge whether a stock, or the overall market. is cheap, fairly valued, or expensive.
AP Securities’ picks beat market
AP Securities’ stock picks beat the broader market with a 10.33 percent total return, including dividends. The PSE index slipped 0.31 percent during this same period.
Gains were driven by strong calls on Puregold Price Club (+35.5 percent), GT Capital (+28.2 percent), and RL Commercial REIT (+21.6 percent), which helped offset steep losses from Converge ICT (-25.6 percent).
Its projections also fell short on select consumer and bank names like Jollibee Foods (-2.2 percent) and Metropolitan Bank & Trust (-3.5 percent), but overall portfolio construction leaned on high-yield, resilient plays that paid off.
—Edited by Miguel R. Camus
