KUALA LUMPUR (July 27): RHB Investment Bank (RHB IB) research has upgraded TIME dotCom Bhd to “buy” at RM5.33 with a higher target price (TP) of RM6 (from RM5.80) and said it turned more positive on TIME dotCom following a recent visit to the Cyberjaya data centre (AIMS @ CJ).

In a note on Thursday (July 27), RHB IB’s Jeffrey Tan said his renewed optimism is supported by TIME dotCom’s timely capacity expansion to meet structural demand, data centres being a core economic imperative, and the higher premiums accorded for infrastructure assets in the new normal.

“We also see continued robust growth for the group’s retail broadband segment, helping to fuel its 11% FY2023-2025 forecasted earnings CAGR (compound annual growth rate).

“Our TP includes a parity ESG (environment, social and governance) score,” he said.

Tan lifted TIME dotCom’s FY2024-2025 core earnings forecast by 3%-7% after factoring in incrementally stronger growth for the broadband segment and data centre share of profits (previously adjusted for the data centre sale to DigitalBridge).

“Note that the stock’s foreign shareholding level has crept up from under 9% a year ago to circa 13% at end-June.

“TDC (TIME dotCom) is slated to announce its 2Q2023/1H2023 results on Aug 18,” he said.