Hong Leong Investment Bank (HLIB) is maintaining a "hold" call on Telekom Malaysia Bhd (TM), with an unchanged target price of RM4.54 per share, given the recent price rally.
"The stock is likely to continue attracting investors due to its defensive nature amid strong swings in global equity markets," said HLIB in a research note today.
The research firm said the nation's largest integrated solutions provider has budgeted between RM2.7 billion and RM3 billion in capital expenditure (CAPEX) for this year as it continued to roll out high speed broadband (HSBB) access to more areas.
TM would expand its Internet access beyond homes and offices via wireless fidelity (WiFi) hotspots, HLIB said, adding that TM was also planning to widen its WiFi reach for nomadic users.
"This came as a shock to us as we expected CAPEX to be decreasing gradually as HSBB's implementation is towards completion.
"We opine that the best approach for TM will be to capture nomadic users by partnering a mobile telecommunication company, it said adding that TM should leverage on its existing collaboration with Celcom Axiata Bhd," it said. -- BERNAMA
"The stock is likely to continue attracting investors due to its defensive nature amid strong swings in global equity markets," said HLIB in a research note today.
The research firm said the nation's largest integrated solutions provider has budgeted between RM2.7 billion and RM3 billion in capital expenditure (CAPEX) for this year as it continued to roll out high speed broadband (HSBB) access to more areas.
TM would expand its Internet access beyond homes and offices via wireless fidelity (WiFi) hotspots, HLIB said, adding that TM was also planning to widen its WiFi reach for nomadic users.
"This came as a shock to us as we expected CAPEX to be decreasing gradually as HSBB's implementation is towards completion.
"We opine that the best approach for TM will be to capture nomadic users by partnering a mobile telecommunication company, it said adding that TM should leverage on its existing collaboration with Celcom Axiata Bhd," it said. -- BERNAMA
