Maybank Cuts DiGi.Com To Hold;Likes Telekom Malaysia

 Maybank IB downgrades DiGi.com (6947.KU) to Hold from Buy with an unchanged target of MYR3.46 after the stock surged by about 16% and outperformed the KLCI by 15% since October. 

The house says "we would prefer to take money first" amid lack of further catalyst following its stock split; recent results by other telcos suggest the Malaysia telco market is now in the "grind phase" as they combat declining voice revenue and slowing data growth, it adds. 

Digi is the "most expensive by far" among the telcos under its coverage at 24X FY12 earnings, says Maybank. 

The house advises investors to switch to Telekom Malaysia (4863.KU) instead. DiGi.com is flat at MYR3.60, while Telekom Malaysia is up 0.2% at MYR4.37.