As we cast our eyes towards some more defensive names, for the 1st time in a few years, TPG caught our attention yesterday as it rallied almost 5% on a positive note from JP Morgan who upped their PT to $7.45, although the telco has traded with little direction over the last 12-months. TPG includes brands such as TPG, Vodafone and iiNet as it strives to achieve $70m in synergies from its merger with Vodafone along its goal to meaningfully rival heavyweight Telstra.
At this stage TPG doesn’t excite us, we have a preference for Aussie Broadband (ABB) for growth & Telstra (TLS) for yield but we do see little downside from current levels if defence becomes the name of the game.
MM is neutral to bullish TPG around $6
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