HDBSVR ups Axiata target price to RM5.80 (6888)

by **hlk** Mon 03 Sep 2012, 11:29

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) has raised the target price for Axiata to RM5.80 after imputing higher earnings from Celcom and higher forecast valuation on XL.
It
expects the current domestic telco climate to remain challenging, while
cost-saving initiatives will likely take shape in FY13-14.
"EBITDA margins may also see some pressure from higher proportion of data revenues in the mix," it said.
HDBSVR
upgraded FY12-14F earnings by 2%-5% on the back of stronger expected
Celcom earnings from its wireless broadband and prepaid segments
(through its ongoing voice resuscitation initiatives).
"Our earnings are also revised after updating our XL Axiata FY12-14F revenue and EBITDA projections," it said.