MAYBANK Investment Banking Group has reinitiated a “buy” recommendation for Manila Electric Co. (Meralco/stock code MER), with a target price of P516 per share, given the company’s role as the sole distribution utility in Metro Manila and its expanding generation portfolio.
“Our target price implies an EV/Ebitda (enterprise value to its earnings before interest, taxes, depreciation and amortization) multiple of 9.1x, which is in line with MER’s 5-year average of 9.2x,” Maybank said in a report last week.
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