Initiate coverage with BUY rating and target price of VND 104,800
As global spending for IT will resume its growth trajectory in 2021-25, FPT Corp. will be one of the key beneficiaries. In our opinion, FPT still remains historic undervalued thanks to their significant transformation of core businesses as well as the huge market size to secure their long-term growth. Thus, we initiate our coverage for FPT Corp. (FPT VN) with a BUY rating and target price of VND104,800 (upside +22.3%), which is derived from Sum-of-the-Part (SOTP) method. It is translated into 2021F PER and PBR of 21.1x and 4.5x, respectively. We believe that these multiples are reasonable, cemented by: 1) the evolution with explosive potential of Technology segment and 2) the resilient growth of Telecommunication.
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