OSK Raises Telekom Malaysia Target To MYR3.78

 OSK Research raises Telekom Malaysia's (4863.KU) price target to MYR3.78 from MYR3.50 after changing its valuation method from a blended P/E approach to 5.5X EV/EBITDA; the house keeps a Neutral rating on the stock. The house cuts its FY11-FY13 forecasts by 5.0%-22% after moderating its margin assumptions due to Unifi operating expenditure and after lowering projected interest income. It says, "We think the stock has more than priced-in dividend expectations with valuations looking excessive." The stock is down 0.5% at MYR4.10