The Panic-Proof Portfolio (Stockchase Research)PLDT Inc.PHITOP PICKJul 22, 2025
Stockchase Research Editor: Michael O'Reilly
PHI is the largest telecommunications company in the Philippines. It has completed 97% of the capital intensive project converting legacy to fiber optic systems for the residential customer and has completed a US-Transpacific sub-sea fiber network. All this while growing cash reserves, retiring debt, and supporting a robust dividend under 50% of cash flow. We recommend setting a stop-loss at $18, looking to achieve $30 -- upside potential of 30%. Yield 5.6%
(A Top Pick Dec 09/25, Down 3.5%)Stockchase Research Editor: Michael O’Reilly
Our PAST TOP PICK with PHI has triggered its stop at $21. To remain disciplined, we recommend covering the position at this time. When combined with previous guidance, this will result in a net investment loss of 5%.
We reiterate PHI, the Philippine's largest telecommunications company as a TOP PICK. Although debt is growing, free cash flow exceeds 280 million (including payout of a robust dividend). It trades at 8x earnings, 2.2x book, and supports a 28% ROE. We recommend trailing up the stop (from $18) to $19, looking to achieve $26 -- upside potential of 18%. Yield 5.5%
PHI is the largest telecommunications company in the Philippines. It has completed 97% of the capital intensive project converting legacy to fiber optic systems for the residential customer and has completed a US-Transpacific sub-sea fiber network. All this while growing cash reserves, retiring debt, and supporting a robust dividend under 50% of cash flow. We recommend setting a stop-loss at $18, looking to achieve $30 -- upside potential of 30%. Yield 5.6%
(Analysts’ price target is $29.82)