True Corporation Public Company Limited (SET: TRUE) has delivered a strong set of first-quarter 2026 results, prompting a wave of positive commentary and target price upgrades from leading investment banks.
Morgan Stanley reaffirmed its ‘Overweight’ recommendation on TRUE, with a target price of THB 15.80 per share, highlighting robust earnings per share (EPS) growth from both the company and its major peer, ADVANC. The firm noted, however, that a key risk for both telco giants remains a potential weakening of consumer demand due to persistent energy price shocks.
CLSA also maintained a bullish stance, rating TRUE as ‘Outperform’ with a target price of THB 15.50 per share, after the first quarter’s earnings surpassed both its own and market expectations. This outperformance was attributed to better-than-anticipated cost controls and lower interest expenses.
The core mobile business delivered slightly higher revenues and net subscriber additions quarter-on-quarter, while the online segment benefited from a continuing net increase in subscribers. Pay TV and product sales, on the other hand, saw declines.
Notably, TRUE announced it will now pay dividends on a quarterly basis, with the first quarter dividend per share (DPS) translating to an approximate 1% yield. The company is scheduled to host its analyst meeting on May 8.
JP Morgan echoed the positive sentiment, designating TRUE as its preferred pick within the Thai telecom sector and maintaining an ‘Overweight’ rating with a target price of THB 16.70 per share. The analyst emphasized the significance of the move to quarterly dividends, calculating that annualizing the Q1 payout of THB 0.14 per share would equate to a full-year dividend yield more than 20% above Bloomberg consensus estimates.
First-quarter net income came in at THB 6.6 billion, up 8% quarter-on-quarter and more than 50% year-on-year, beating JP Morgan and Bloomberg consensus forecasts by 4% and 8%, respectively. These results are expected to lead to upward revisions in both EPS and DPS, providing further potential upside for the share price.
Citigroup also maintains a ‘Buy’ rating and boosts TRUE’s target price to THB 18.10 per share after recording a significant surprise in both normalized profits and dividend announcements. TRUE’s normalized profit rose by 53% year-on-year and 8% quarter-on-quarter, with EBITDA expanding 11% YoY and 1% QoQ. This performance positions first-quarter net profit at around 27% of Citigroup’s full-year forecast.
The interim dividend of THB 0.14 per share came as a surprise in both its amount and the fact that the payment is quarterly. Citi noted that TRUE’s underlying mobile business outpaced ADVANC in quarterly growth, and that the company has dramatically narrowed the gap in broadband revenues compared to the prior year.
The brokerage continues to recommend TRUE, citing a 30% valuation discount to ADVANC, similar dividend yields, and a stronger momentum in earnings growth.
