Australia's Tuas hits 2-month high, Citi upgrades earnings outlook
Shares of Australia's Tuas Ltd rose as much as 4% to A$2.35, their highest level since July 20. Citi upgraded FY26-FY28 EBITDA estimates by 5% to 17% to reflect stronger-than-expected momentum in 1H. However, the brokerage remains cautious on the company's update, citing a potential impact from an IMDA probe into spectrum misuse on operating expenses and increased compliance costs. Citi lowered its price target to A$3.35 from A$9.95, accounting for regulatory impact on license and costs, while maintaining a 'Buy' rating.
35, the highest since July 20, and were on course for a sixth straight session of gains. Citi raised FY26-FY28 earnings before interest, taxes, depreciation and amortisation (EBITDA) estimates by 5% to 17% after what it described as stronger-than-expected momentum in 1H, but stayed cautious on the company’s update. The brokerage said the IMDA probe into spectrum misuse is likely to weigh on operating expenses (opex) and add compliance costs. In May, Singapore's Infocomm Media Development Authority said it found mobile network unit Simba could have been using radio frequency bands that it had not been assigned to provide mobile services.
Citi said opex could step up in 2H and EBITDA margin could decline in 2H26. 95, while keeping a 'Buy' rating. The stock is down nearly 67% year to date.