- We maintain our BUY rating for FPT following an 11% increase in our target price (TP). In this Update Report, we keep our aggregate 2024F-27F NPAT-MI forecast relatively unchanged (with respective changes of -3%/-3%/0%/2% in our 2024F/25F/26F/27F NPAT-MI forecasts). We add separate valuations for the GPU-as-a-Service/GPUaaS (using the DCF method) and data center services (using the target P/E method) to our current Sum-of-the-Parts valuation (see details on pages 7 and 8). In addition, we roll our TP horizon forward to YE2025 from mid-2025 as previously.

- Our target price puts FPT's 2024F/25F P/Es at 30.2x/23.3x vs our projected 2024F-27F EPS CAGR of 27%, which we believe is justified given FPT’s bright earnings outlook.

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