- 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 decrease our target price (TP) by 8% due to our 10% lower aggregate 2022F-2025F NPAT-MI forecast that is mainly driven by lower projections across segments in 2023 as we believe an economic slowdown could weigh on the growth of FPT’s business over the short term. In addition, we roll our TP horizon forward from mid-2023 to YE2023 while cutting our target P/E across segments by 12%-14% following a 100-bp increase of our in-house cost of equity. 

- Potential downside risks: Fierce competition from integrated telcos that provide both fixed and mobile broadband services; sharper-than-expected economic slowdown that hampers global IT spending further.

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