- 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 13% mainly due to 13%/30% increases in our target equity values for Software Outsourcing (SO)/Education & others (which respectively accounted for 46% and 24% of our previous total target equity value for FPT). The higher valuation for SO/Education & others is led by (1) 2%/22% increases in 2023F-24F aggregate PBT and (2) rolling our TP horizon forward to mid-2024 vs YE2023 as previously. Overall, we change our 2023F/24F/25F NPAT-MI projections by -2%/+1%/+2% vs our previous forecasts. 

- Our TP puts FPT's 2023F/24F P/E at 24x/20x, which we believe is justified given the company’s bright earnings outlook. We forecast a 2022-2025F EPS CAGR of 21%.  

Powered by Froala Editor