The stock broker, in a Feb. 9 report penned by research head Mark Angeles and Samantha Patricio, said this improving earnings base supports Globe’s 5.8 percent dividend yield, making the telco giant an attractive defensive stock in 2026.
In a buy-rating report, FMS raised its 12-month target price to P2,100, implying a roughly 21 percent upside from its Feb. 9 closing price.
“The strategic alliance leverages Starlink’s extensive satellite network, positioning Globe ahead of competitors,” it said.
The broker said the Starlink tie-up is a key catalyst because satellite coverage can remove dead zones, improve reliability, and reduce typhoon-related outages.
It added that better coverage could also widen Globe’s addressable market and support subscriber growth, reinforcing recovery in the core telco business.
Tailwinds
“[T]elco spending among Philippine households is closely tied to disposable income, particularly within lower income deciles,” FMS said.
“The combined effects of higher minimum wages, subdued inflation, and a 14 percent year-on-year increase in the government’s social services budget for 2026 may create room for households to allocate more toward telco services,” it added.
On demand, First Metro said higher minimum wages, softer inflation, and a bigger 2026 government “ayuda” budget give lower-income households more room to spend on data and internet.
The broker noted that Mynt/GCash accounts for about 32 percent of Globe’s valuation, making it a steady earnings pillar that cushions volatility in the telecom business.
—Edited by Miguel R. Camus
