In a report dated Jan. 12, First Metro Securities (FMS) said this premium strategy gives Megaworld a fresh profit lever, while the company keeps its broader residential inventory manageable.
First Metro Securities, which rates the stock a “Buy,” said Megaworld’s management told investors at the DBS Global Financial Markets’ Regional Property Conference on Jan. 7, 2026 that township demand remains steady and recurring income continues to expand.
Stock price upside
First Metro Securities reiterated its BUY call and set a target price of P2.80, saying the stock remains undervalued versus peers.
It said it could turn more bullish if office vacancies ease and rents reprice faster, and if Metro Manila residential inventory levels improve further.
Luxe Collection as growth lever
With its core pipeline maintained, First Metro Securities said Megaworld is now pursuing premium upside through the Luxe Collection, an ultra-luxury portfolio launched in 2025 for the top 1 percent of households.
It highlighted a flagship New Manila, Quezon City project—a 6.7-hectare gated enclave near the embassy district with 162 lots priced at P66 million to P126 million each.
Offices, AI and key risks
First Metro Securities said management also addressed concerns that artificial intelligence could disrupt outsourcing and office demand, noting that “[Megaworld] management acknowledges risks but highlights the competitive Philippine labour costs and tenant feedback indicating no current impact.
It also flagged risks including weaker consumer spending, hybrid work trends and the impact of the POGO exit.
—Edited by Miguel R. Camus
