DiGi.com - Under attack

Stock Name: DIGI
Company Name: DIGI.COM BHD

Research House: CIMB

Price Call: SELL

Target Price: 3.75

Target RM3.75

We are more negative on DiGi in light of rising competition from Maxis in the migrant market and low likelihood of the 8.9 sen capital distribution we earlier anticipated for FY13. DiGi downplayed the threat from Maxis's latest prepaid plan during yesterday's luncheon.

Source: CIMB Day Break 15 March 2012, Full PDF report