- We maintain our BUY rating for FPT but trim our target price (TP) by 3% due to a 3% reduction in our aggregate 2024-26F NPAT-MI forecast (-1%/-2%/-3% in respective years 2024F/25F/26F), specifically in the domestic IT and online ad businesses, following slightly lower-than-expected results in H1 2024.

- Our target price puts FPT's 2024F/25F P/Es at 28.8x/22.2x vs our projected 2023-26F EPS CAGR of 26%, and the company is currently traded at a TTM P/E of 24.5x vs the median 5-year average TTM P/E of 34.5x for selected Indian IT service peers (see page 6).  

- Upside catalysts: Stronger-than-expected global IT spending in the short-medium term; stronger-than-expected output for current projects and further projects/collaborations with global partners within the secular trend of tech development in Vietnam.

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