KUALA LUMPUR: Maybank Investment Bank Research has downgraded Maxis to Hold on concerns of slower-than-expected industry growth.

The research house said on Monday, June 21 whilst earnings remain on track to meet its forecast 1.4%,1% and 3.7% net profit growth in 2010-12 respectively, the spectre of slower-than-expected industry growth hangs heavy.

"In the longer-term, Maxis? decision to evolve into an integrated telco with a significant (fibre-based) fixed network to offer
fixed broadband and pay TV services is a move in the right direction," it said.

However, Maybank IB Research said this reduced the probability of any upside surprises in earnings in the forecast 2010-12 period.

"We halve our terminal growth assumption to 0.75% in reaching our lowered DCF TP of RM5.78. At RM5.78, Maxis would still be trading at a premium to the Index, at a prospective 19x 2011 PER," it said.