Bursa Malaysia Stock Watch

Maxis: Downgrade to Hold - Pain Before The Gain

kltrader
Publish date: Mon, 03 Sep 2012, 11:24 AM
kltrader
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  • Take profit for now. Although 2Q12 results are in line with expectations and management reports a positive response to its market share initiatives so far, primarily for its IDD, prepaid and fibre products, margin erosion is likely to steepen in the next couple of quarters as Maxis plans further initiatives and programmes to regain market share.
  • With a new EV-derived TP of MYR7.00 (+3%), we downgrade the stock to HOLD. Downside should be mitigated by its dividend yield of 5.7%.
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Source: Maybank Research - 3 Sept 2012
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