notes: PIZZA/SHAKEY`S PIZZA ASIA VENTURES, INC (15 MAY 2018)

COL FINANCIAL DAILY NOTES (15 MAY 2018)

"Maintain HOLD. We are maintaining our HOLD rating for PIZZA with an FV estimate of Php15.0/sh. At its current price of Php14.10/sh, PIZZA’s valuation remains quite unattractive as it is trading at 25.4X 2018E P/E and only 6.0% below to our fair value estimate. Nevertheless, we continue like PIZZA given its dominance in the chained full-service pizza restaurants as well as its favorable earnings growth outlook given the abundance of growth drivers. We believe that pullbacks are opportunities to buy the stock."



COL FINANCIAL DAILY NOTES (11 APRIL 2018)

"We are maintaining our HOLD* rating for PIZZA with a fair value estimate of Php15.0/sh. At its current price of Php14.38/sh, PIZZA is trading at only a 4.1% discount to our fair value estimate. Note that we recently increased our risk-free rate assumption causing our FV estimate to decline by 8.0% from Php16.30/sh. Nevertheless, we continue to like PIZZA given its dominance in the chained full service pizza restaurants as well as the abundance of several growth drivers it is currently pursuing."



*BUY Stocks that have a BUY rating have attractive fundamentals and valuations based on our analysis. We expect the share price to outperform the market in the next six to 12 months.

HOLD Stocks that have a HOLD rating have either 1) attractive fundamentals but expensive valuations 2) attractive valuations but near-term earnings outlook might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely in line or underperform in the market in the next six to twelve months.

SELL We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to12 months.