Stock Name: DIGI
Company Name: DIGI.COM BHD
Stock Name: DIGI
Company Name: DIGI.COM BHD
Stock Name: DIGI
Company Name: DIGI.COM BHD
HwangDBS Vickers research has raised DiGi.com Bhd's earnings forecast for the financial year 2011 by two per cent and financial year 2012-2013 by five-six per cent after the company decided to pass the six per cent service tax to prepaid customers effective Sept 15.
HwangDBS Vickers in a research note today said the higher earnings had
assumed marginal two per cent reduction in prepaid average revenue per user
(ARPU) to RM38-40.
"We believe the increase in prepaid cost could cause price sensitive
subscribers to reduce usage, and DiGi might cut rates to drive up usage," it
said.
Meanwhile, MIDF Research said DiGi's move to undertake a share split
exercise of one-to-ten to improve trading liquidity was a good move as it will
result in the company's prices becoming more affordable.
The research house expects the theoretical share price to be adjusted to
RM3.12 based on the September 5 closing price of RM31.20.
HwangDBS Vickers, along with another research house, Hong Leong Investment
Bank Research, maintained a "hold" call on DiGi with both raising the equity's
target price.
HwangDBS increased the target price to RM32.20 from RM30.80 while the latter
raised it to RM32.03 from RM29.20.
MIDF Research on the other hand, maintained a "buy" call on the
telecommunication company with a higher target price of RM35.50 from RM33.50
previously while ECM Libra upgraded its recommendation to "buy" with target
price set at RM35.05.--Bernama
Company Name: DIGI.COM BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 32.20 |
Stock Name: DIGI
Company Name: DIGI.COM BHD
| Research House: MIDF | Price Call: BUY | Target Price: 35.50 |
Stock Name: DIGI
Company Name: DIGI.COM BHD
| Research House: ECMLIBRA | Price Call: BUY | Target Price: 35.05 |
HwangDBS Vickers research has raised DiGi.com Bhd's earnings forecast for the financial year 2011 by two per cent and financial year 2012-2013 by five-six per cent after the company decided to pass the six per cent service tax to prepaid customers effective Sept 15.
HwangDBS Vickers in a research note today said the higher earnings had
assumed marginal two per cent reduction in prepaid average revenue per user
(ARPU) to RM38-40.
"We believe the increase in prepaid cost could cause price sensitive
subscribers to reduce usage, and DiGi might cut rates to drive up usage," it
said.
Meanwhile, MIDF Research said DiGi's move to undertake a share split
exercise of one-to-ten to improve trading liquidity was a good move as it will
result in the company's prices becoming more affordable.
The research house expects the theoretical share price to be adjusted to
RM3.12 based on the September 5 closing price of RM31.20.
HwangDBS Vickers, along with another research house, Hong Leong Investment
Bank Research, maintained a "hold" call on DiGi with both raising the equity's
target price.
HwangDBS increased the target price to RM32.20 from RM30.80 while the latter
raised it to RM32.03 from RM29.20.
MIDF Research on the other hand, maintained a "buy" call on the
telecommunication company with a higher target price of RM35.50 from RM33.50
previously while ECM Libra upgraded its recommendation to "buy" with target
price set at RM35.05.--Bernama
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