8 Best Communication Stocks To Buy According to Analysts

5. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK)

Average Price Target Upside: 31.69%

Number of Hedge Fund Holders: 11

Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK), commonly known as Telkom Indonesia, is an Indonesian telecommunications conglomerate with a strong presence in the country’s telecommunication and digital service industries.

It operates through several business segments, including digital connectivity, digital platforms, and digital services, and has expanded its reach beyond traditional telecom offerings into areas such as cloud computing, artificial intelligence, cybersecurity, and digital entertainment.

Telkom Indonesia’s (NYSE:TLK) financial performance in the first half of 2024 shows solid growth, driven by its focus on digital services. Total revenues reached Rp57.166 trillion (Indonesian Rp 1 = US$ 0.000065), representing a 29.9% year-over-year increase. Digital business contributed Rp39.536 trillion, growing 4.9% year-over-year and accounting for 89.9% of mobile revenue.

It also completed its integration with IndiHome’s B2C segment, achieving Fixed-Mobile Convergence (FMC), which strengthened its market leadership in both fixed and mobile services. The customer base expanded to 159.9 million mobile users, while IndiHome B2C saw a significant boost in subscribers.

Telkom Indonesia (NYSE:TLK) also used significant Capex to improve digital infrastructure, including 4G and 5G BTS deployment and the construction of submarine cables and hyperscale data centers.

On October 11, Telkom Indonesia (NYSE:TLK) revealed that it is actively supporting Indonesia’s smart city trend and has covered over 500 cities and regencies. Its subsidiary, Telkomsel’s 4G service reaches 97% of the population with extensive network infrastructure. Collaboration with OTT and digital partners helps educate the public on future connectivity and content trends, aligning with the smart city movement. The company takes the 5th spot on our list of best communications spots.