Bursa Malaysia Stock Watch

Telekom Malaysia (Buy): Unifi-nity and beyond

kltrader
Publish date: Fri, 25 Nov 2011, 11:29 AM
kltrader
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TM's 3Q11 results were above expectations at the core level, led by strong broadband-related contributions. We have raised our 2011-12 forecasts by 11% and 15% respectively, as we factored in the Axiata share sale gain as well as higher Internet contributions over the next two years. In addition, we have lowered our beta assumption from 0.9x to 0.86x, in line with recent lower volatility for dividend stocks. This raises our DCF-derived valuation target from RM4.60 to RM4.84. BUY.

Maybank research (25 November 2011)

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