KUALA LUMPUR: OSK Research is maintaining a Buy recommendation on Axiata with a target price of RM5.83.
It said on Tuesday, March 15 that India press reports indicated that Axiata's 19.3%-owned associate. Idea Cellular (Idea) has received a cancellation notice from the Department of Telecommunications (DOT) on March 11 for its mobile license in Punjab.
'We believe at stake is Idea's inherited license from Spice Telecom following the merger last year given the overlapping circles of both Idea and Spice,' it said.
OSK Research said the issue is currently under arbitration as Idea had earlier written to DOT to surrender the licenses in overlapping circles but received no reply.
'Idea contributes less than 5% of our sum-of-parts and less than 10% of our core PATAMI forecast for Axiata. We are maintaining our forecast. Axiata's share price has not been spared the recent sell-down in the market.
'The current weakness in its share price presents a good buying opportunity given its compelling FY12 PER of just 12 times,' it said. ''
It said on Tuesday, March 15 that India press reports indicated that Axiata's 19.3%-owned associate. Idea Cellular (Idea) has received a cancellation notice from the Department of Telecommunications (DOT) on March 11 for its mobile license in Punjab.
'We believe at stake is Idea's inherited license from Spice Telecom following the merger last year given the overlapping circles of both Idea and Spice,' it said.
OSK Research said the issue is currently under arbitration as Idea had earlier written to DOT to surrender the licenses in overlapping circles but received no reply.
'Idea contributes less than 5% of our sum-of-parts and less than 10% of our core PATAMI forecast for Axiata. We are maintaining our forecast. Axiata's share price has not been spared the recent sell-down in the market.
'The current weakness in its share price presents a good buying opportunity given its compelling FY12 PER of just 12 times,' it said. ''
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