Tech, Media & Telecom Roundup: Market Talk
The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0656 GMT - India's Swiggy is set to deliver a CAGR of about 20% for its food delivery business's gross order value over FY 2025-2027, while its quick commerce business is expected to see its GOV rise about 87% in FY 2026, according to Nomura analysts. The bank's Abhishek Bhandari and Karan Nain projects Swiggy's instant delivery service Instamart will turn its contribution margin positive by 2Q FY 2027 due to slowing competition, lower discounting and expanding capacity in online fulfilment centerseven as the company consolidates its position as part of a duopoly with Zomato in the Indian food delivery space. The bank initiates coverage of the stock with a buy rating and sets a target price of INR550.00. The stock was recently at INR448.00.(jason.chau@wsj.com)
0416 GMT - Thai telecommunication companies' revenue is likely to be boosted by higher data consumption stemming from generative artificial intelligence smartphones, say CGS International's Weerapat Wonk-urai in a note. He expects strong Gen AI smartphone shipment growth to Thailand to drive around 14% data consumption CAGR over 2024 to 2030. This should translate to solid mobile average revenue per user growth for Advanced Info Service and True Corp, he says. CGS International upgrades the sector to overweight from neutral, with AIS as its top pick due to its higher-quality mobile subscribers and healthy Ebitda growth. The brokerage has buy ratings on both AIS and True Corp. with targets of THB341.00 on the former and THB14.10 on the latter. AIS and True Corp. recently traded at THB295.00 and THB11.40, respectively.(megan.cheah@wsj.com)
2308 GMT - Changes in road user charging legislation in New Zealand is a "company altering opportunity" for Eroad, given its dominant market position in the telematics space there, Shaw & Partners says. The proposed changes mean the existing fuel excise duty, currently paid at the pump, will be managed by electronic road user charging in future. This reflects rising take-up of electric vehicles. "Eroad's cost-to-serve at 6-7% of New Zealand revenue, national installer network, insurer/fuel-card channels, and a 56% share of heavy-vehicle RUC kilometers underpin a difficult-to-displace position versus potential new entrants," says analyst Jack Daley. Shaw raises its price target on Eroad by 50% to A$2.70/share to account for the opportunity. Eroad ended last week at A$2.29. (david.winning@wsj.com; @dwinningWSJ)