Intelligent Investor

TPG falls

Today's price fall is not a call to action.
By · 20 Sep 2016
By ·
20 Sep 2016 · 1 min read
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Recommendation

TPG Telecom Limited - TPM
Buy
below 8.00
Hold
up to 15.00
Sell
above 15.00
Buy Hold Sell Meter
HOLD at $9.68
Current price
$8.93 at 16:40 (20 October 2020)

Price at review
$9.68 at (20 September 2016)

Max Portfolio Weighting
6%

Business Risk
Medium

Share Price Risk
Medium
All Prices are in AUD ($)

TPG reported full year results this morning and, although profits rose over 70%, forward guidance was lower than expected. Higher capital expenditure and higher costs are mostly to blame as TPG acquires more spectrum and extends its fibre network.

As we outlined in TPG's biggest byte, the business was being richly valued and today's 15% plus price fall isn't necessarily an opportunity. This is not a call to action. We will go through the results in more detail in an upcoming review. For now, HOLD.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
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