True Corporation

True Corporation Plc (TRUE)
 
True's earnings turnaround largely hinges on its new mobile operation under the JV with CAT whose new CEO was recently reported as saying that the partnership could soon break apart. On top of that, the many legal investigations by state authorities are negative overhangs. We remain Neutral on True with an unchanged earnings forecast and DCF-based target price. Although we are concerned about the rising risk of the turnaround being jeopardised by its partnership with CAT turning sour, any revision will only come after our meeting with True’s CFO on 4 May.