Affin has recommended an 'Add' call for Maxis and put the target price on the stock at RM5.63.

Despite the slight shortcomings in its first quarter 2010 results, Maxis cashflows are expected to remain solid and hence sufficient to sustain its dividend yields of 6-7.2 per cent, said Affin.

Future contribution from its fixed line broadband division should ensure that any further shortfalls are shored up.

'Management also continues to highlight its stance towards an active capital management policy, which in our estimates could result in an additional payout of 42-58 sen based on a guided Debt/EBITDA ratio of 1.75-2.00x,' said Affin.