Several research houses have called a “buy” on Axiata and revised their 12-month target price to RM5 and above. As it is, Telenor has a 49% stake in Digi and Axiata holds the entire stake in Celcom Axiata Bhd. Post-merger, DigiCelcom would be the largest mobile operator in Malaysia with an estimated proforma revenue market share of 54% in 2018, overtaking Maxis Bhd (34%), CIMB said. “We have upgraded Axiata from a ‘hold’ to a ‘buy’ with a sum of the parts (SOTP)-based target price of RM5.00. At our target price, Axiata would trade at close to its five-year mean EV/EBITDA of seven times,’’ UOBKayHian said.

Source: The Star May 08, 2019 00:11 UTC