We maintain our BUY rating for FPT as we remain positive about the long-term growth outlook of the company’s key businesses: IT Services, Education and Telecom Services.

We increase our target price (TP) by 4% partly due to our 1% higher aggregate 2023F-2025F NPAT-MI forecast that is mainly from 10% higher projections for Software Outsourcing’s net profit in 2023 as we believe global IT spending on digitalization will post double-digit growth across key markets.

Our TP puts FPT's 2023F P/E at 21x, which we believe is justified given its bright earnings outlook. We forecast a 2022-2025F EPS CAGR of 20%.