OSK Keeps Axiata Group At Buy; Target MYR5.50

29 Dec 2011

OSK Research keeps its Buy rating on Axiata Group (6888.KU) with an unchanged price target of MYR5.50.  It says "while the group's overall prospects are clouded by macro-economic uncertainties and as its overseas OpCos expand amid a moderating global growth, we are encouraged by the strategic initiatives undertaken by management to keep operating cost lean and to promote the sharing of infrastructure on the back of accelerating data usage."  The house adds, valuation-wise, the stock remains an inexpensive regional mobile exposure, trading at a 13.5X FY12 forecast earnings per share. The stock is last unchanged at MYR4.99.