Watch the video with Andrew Stotz or read Watching the Street: Philippines below.
Consensus Recommendations: Philippines
Consensus recommendations in the Philippines have been trending upwards and the market now receives the strongest “buy” recommendation in Asia.
Third Point's Dan Loeb discusses their new positions in a letter to investor reviewed by ValueWalk. Stay tuned for more coverage. Loeb notes some new purchases as follows: Third Point’s investment in Grab is an excellent example of our ability to “lifecycle invest” by being a thought and financial partner from growth capital stages to Read More
Among companies with the most positive recommendations, Megawide Construction is doing repair work among other things related to real estate and construction. Both Metro Pacific Investments and Alliance Global Group have exposure to these industries as well.
Among companies with the most negative ratings, JG Summit Holdings, Aboitiz Equity Venutures, LT Group and DMCI Holdings are all conglomerates spanning a large number of industries.
Consensus Earnings Estimates: Philippines
Consensus EPS growth estimates have been stable over the past five years, averaging about 11%. However, analysts were only fairly accurate in 2014.
Jollibee Foods owns the fast food brand Jollibee that has been referred to as Asia’s McDonald’s, as well as being the franchisee of international brands such as Burger King.
Cebu Air has among the strongest recommendations but among the lowest consensus EPS growth estimates, and its share price has fallen by almost 25% in the past 3 months.
Consensus Target Prices: Philippines
Both the actual return and the estimated upside has been rather volatile in the Philippines. Analysts were only fairly accurate in 2013.
Among those with the highest estimated target price upside, Alliance Global Group owns 64% of Megaworld and both of their shares have fallen by more than 20% YTD.
Companies with the lowest expected return have all seen their share prices go up by 20% or more YTD, except DMCI Holdings, which is down about 5%.
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