CIMB Research has maintained its neutral call on Axiata Group Bhd but raised its target price for Axiata’s shares to RM3.57 from RM3.47 on the back of a strong third-quarter (3Q) performance of its 84%-owned Indonesian unit Excelcomindo (XL).
Meanwhile, HwangDBS Vickers Research agreed on the possible 5% upside to Axiata’s net profit from XL’s boosted performance. However, it maintained its fully valued call on the telco giant with a target price of RM2.70 as it expressed concern that its share prices had run ahead of fundamentals.
Overall, Axiata’s total equity is valued at RM30 billion, with a PE of 16.6 times based on FY09 and 14 times based on FY10. Axiata ended flat at RM2.93 yesterday.
Meanwhile, HwangDBS Vickers Research agreed on the possible 5% upside to Axiata’s net profit from XL’s boosted performance. However, it maintained its fully valued call on the telco giant with a target price of RM2.70 as it expressed concern that its share prices had run ahead of fundamentals.
Overall, Axiata’s total equity is valued at RM30 billion, with a PE of 16.6 times based on FY09 and 14 times based on FY10. Axiata ended flat at RM2.93 yesterday.
This article appeared in The Edge Financial Daily, November 3, 2009.
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