Public Investment Bank initiated coverage of Maxis Bhd, the country's largest mobile phone operator, with a "neutral" rating and a target price of RM7.26 per share, citing dismal growth prospects due to narrowing profit margins.
"Though we acknowledge progressive growth from the non-voice segment, we think Maxis' strategy of offering more competitive voice packages for the sake of reclaiming its subscriber losses will eventually depress its margins," Public Investment said in a note.
However, the research house said Maxis' downside risks will be cushioned by its dividend yield of 40 sen per share.
Maxis shares slipped 1.02 percent against the Malaysian benchmark stock index's 0.86 percent fall. -- Reuters
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