HSBC analyst Neale Anderson maintained a Buy rating on HKBN (HKBNF – Research Report) today and set a price target of HK$4.90.
Neale Anderson’s Buy rating for HKBN (ticker: HKBNF) is grounded on several key considerations. Firstly, there are encouraging indications in the company’s financial results. Specifically, the residential renewal ARPU has increased, and the enterprise order growth has risen by 18% for FY23. This growth is accompanied by an expansion in solutions sales. Moreover, the company has successfully implemented a strategy shift towards enhancing value per customer in the residential business, which has led to an increase in new contract ARPU.
Secondly, despite the high debt load and the impact of COVID-19 disruptions, Anderson believes that HKBN’s strategic direction is starting to take shape. The company has secured a hedge for a considerable portion of its debt. In the future, it is anticipated that residential revenue will improve, thanks to higher re-contracting prices. Also, Anderson believes that the company’s transition from telecom connectivity towards ICT services, although challenging, is the right move. Therefore, based on these factors, Anderson retains a Buy rating for HKBN.
According to TipRanks, Anderson is a 3-star analyst with an average return of 4.4% and a 41.67% success rate.
In another report released today, J.P. Morgan also upgraded the stock to a Buy with a HK$4.50 price target.
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HKBN (HKBNF) Company Description:
HKBN Ltd. is an investment holding company, which engages in the provision of fixed telecommunications network services. It also provides residential fibre broadband services; wireless fidelity access; communication, entertainment, and cloud solutions; and administrative support services. The company was founded on November 26, 2014 and is headquartered in Hong Kong.
