True Corporation

True Corporation Plc (TRUE)

While we are heartened that TRUE’s business is slowly looking up, execution is the next key challenge and hinges on management competency and fortunes. Its track record is poor, however, and we would wait for clearer signs of a real turnaround. Despite cuts to our earnings estimates, our DCF-based target price is raised due to a valuation rollover. We also upgrade to NEUTRAL as we think its share price already reflects downside risks while re-rating catalysts have yet to take hold.