Wednesday, 14 March 2012

CIMB Research keeps Axiata target price unchanged at RM5.48

KUALA LUMPUR (March 14): CIMB Equities Research raised its FY13-14 dividend assumptions for Axiata following our non-deal roadshow as capex post FY12 should fall faster than its expectations.

“This should push ROIC from about 11% this year to the high teens over the next three to five years. Axiata intends to up its stakes in Idea and M1, failing which it will sell out. The key risks are regulations in Bangladesh and India,” it said.

CIMB Research said Axiata remains a Buy and one of its regional top telco picks. It trimmed its EPS estimates on the higher dividends but no change to its DCF-based target price of RM5.48.

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