Kenanga ups Axiata's target price (6888)

Kenanga Research raised Axiata Group Bhd's target price to RM6.25 per
share from RM5.95 previously after the telecommunications firm obtained
approval to issue up to US$1.5 billion worth of Islamic bonds to fund
general corporate needs.

"While Axiata has no immediate funding
requirement, having the programme in place will allow the group to tap
into the international debt capital market and provide it flexibility
in meeting its funding requirements moving forward," the broker said in
a research note on Friday.

Maintaining "market perform" on the
counter, Kenanga said it did not rule out the possibility that Axiata
might potentially use certain sukuk proceeds for some capital
initiative plans to maximise shareholder returns in future.

"Should this scenario happen, this may provide a short-term re-rating catalyst for the stock in our view," it added.

By 9.44am, Axiata remained unchanged at RM5.99 per share,
underperforming the Malaysia's benchmark stock index's 0.10 percent
rise. -- Reuters