Brokers call: MIDF reaffirms buy call on Telekom (ext: Edge)

MIDF Research has reaffirmed its buy recommendation on Telekom Malaysia Bhd at RM3.56 with a target price of RM4, as it expects the company's shares to outperform the broader market given its capital repayment element.

Commenting on the repayment of RM2 billion by Axiata Group Bhd (formerly TM International Bhd), it said with the maiden repayment, any lingering concern over Telekom's ability to proceed with its special dividend of 98 sen was removed.

It said the maiden repayment was encouraging and indicated that Axiata would meet its deadline of repaying Telekom the full RM4.03 billion by April 24.