BUZZ - Shares of Australia's Tuas hit a two-month high as Citi raises its profit forecast

September 21 - ** Shares of Australian Tuas Ltd (TUA.AX) rose as much as 4% to 2.35 AUD, reaching their highest level since July 20

** The stock is on track for a sixth consecutive day of gains

** Citi has raised its EBITDA forecast for fiscal years 2026 to 2028 by 5% to 17% to reflect stronger-than-expected growth momentum in the first half

** However, the broker remains cautious on the company’s latest developments, stating that the Infocomm Media Development Authority (IMDA) of Singapore’s investigation into spectrum misuse will impact operating expenses (opex), and compliance costs are expected to rise

** In May, Singapore’s Infocomm Media Development Authority (IMDA) stated that its mobile network subsidiary Simba may have used unallocated radio frequency bands (link) to provide mobile services

** Citi expects operating expenses may rise in the second half and the EBITDA margin to decline in the second half of 2026

** Taking into account regulatory impacts on licensing and costs, Citi has lowered its target price from 9.95 AUD to 3.35 AUD while maintaining its “buy” rating

** Year-to-date, the stock price has fallen nearly 67%

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