KUALA LUMPUR: OSK Research raised its fair value for DiGi.com to RM31.10 following the release of its third quarter earnings for the period ended Sept 30.
It said on Tuesday, Oct 25 that DiGi continued to execute well with strong data growth and commendable expansion in voice revenue, aided by seasonal festivities.
“The 9MFY11 results were slightly ahead of our expectations, prompting us to tweak upwards our FY11/12 earnings forecast by 1%-4%.
“Our FV on the stock rises to RM31.10 (from RM28.60) based on 5.5 times FY12 EV/EBITDA and 9.5% WACC (including the 65 sen capital distribution to be paid in 1H2012),” it said.
OSK Research said DiGi is its preferred Malaysian telco dividend pick alongside Telekom Malaysia.
It said on Tuesday, Oct 25 that DiGi continued to execute well with strong data growth and commendable expansion in voice revenue, aided by seasonal festivities.
“The 9MFY11 results were slightly ahead of our expectations, prompting us to tweak upwards our FY11/12 earnings forecast by 1%-4%.
“Our FV on the stock rises to RM31.10 (from RM28.60) based on 5.5 times FY12 EV/EBITDA and 9.5% WACC (including the 65 sen capital distribution to be paid in 1H2012),” it said.
OSK Research said DiGi is its preferred Malaysian telco dividend pick alongside Telekom Malaysia.
