KUALA LUMPUR: Maybank IB Research has raised its sum-of-parts based target price for Axiata Group Bhd to RM5.80 from RM5.60 while maintaining its Buy call on the stock, and said it expects Axiata to be net cash from next year onwards.
With strong cash flow generating capabilities from its domestic and overseas operations, Axiata's balance sheet continues to strengthen, it said in a note Thursday, July 28.
The research house said it expects Axiata's debt/EBITDA ratio to decline to 1.3 times by end-2012 from 4.6 times in end-2008.
'With no major acquisitions apparent in the near horizon, prospects for positive surprises on the dividend front are high, in our view.
'Our SOP-based target price is marginally raised to RM5.80 from RM5.60 as our cost of equity assumption is lowered to 11.1% from 11.5%, on rolling forward our valuation parameters,' it said.
With strong cash flow generating capabilities from its domestic and overseas operations, Axiata's balance sheet continues to strengthen, it said in a note Thursday, July 28.
The research house said it expects Axiata's debt/EBITDA ratio to decline to 1.3 times by end-2012 from 4.6 times in end-2008.
'With no major acquisitions apparent in the near horizon, prospects for positive surprises on the dividend front are high, in our view.
'Our SOP-based target price is marginally raised to RM5.80 from RM5.60 as our cost of equity assumption is lowered to 11.1% from 11.5%, on rolling forward our valuation parameters,' it said.
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