** Analysts at Morgan Stanley raise their price target for Australia's TPG Telecom TPG.AX to A$4.70 from A$4.35, noting a 2.2% increase in TPG's service revenue in CY25, along with balance sheet improvements

** However, analysts view co as relatively expensive, estimating it to be trading at ~7.5x FY26E EBITDA

** Following the sale of its fibre assets to Vocus, TPG has become primarily a consumer mobile firm and NBN broadband reseller, leaving it vulnerable to disruptions in the currently favourable mobile market and making medium-term EBITDA growth more challenging - Morgan Stanley

** Maintains underweight rating, preferring industry peers Telstra TLS.AX and Aussie Broadband ABB.AX, for their rising absolute dividend and greater capital growth potential respectively

** Stock down 0.6% to A$5.26, bringing YTD gains to 17.2%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))