KUALA LUMPUR (Nov 25): CIMB Equities Research said DiGi’s share price has bolted ahead of its fundamentals, after a 20% surge in its share price, which it attributed to its stock split.
It said on Friday that DiGi’s fundamentals remain unchanged. Its P/E and EV/EBITDA valuations are now among the highest in the sector.
“Given its sky-high valuations, we downgrade it to Underperform from Outperform even though our DCF-based target price rises with our rollover to end-12.
“We also trim EPS for an assumed 8.9 sen increase in FY12 DPS paid out from its share premium account. Switch to TM and Axiata,” it said.
It said on Friday that DiGi’s fundamentals remain unchanged. Its P/E and EV/EBITDA valuations are now among the highest in the sector.
“Given its sky-high valuations, we downgrade it to Underperform from Outperform even though our DCF-based target price rises with our rollover to end-12.
“We also trim EPS for an assumed 8.9 sen increase in FY12 DPS paid out from its share premium account. Switch to TM and Axiata,” it said.
