Axiata top pick among telcos: OSK (BT)

The Axiata Group remains as the top pick for exposure to Malaysian telecoms, said OSK Research today.

Its key share price re-rating catalysts, are the possibility of an earlier than expected maiden dividend, from proceeds of the XL Axiata (XL) placement and continuing strong earnings execution of its key mobile assets in Celcom and XL.

Axiata yesterday announced its revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow by 12.1 per cent and 14.1 per cent year-on-year respectively.

OSK said Axiata's revenue target is slightly below its forecast of 13.1 per cent for financial year 2010.

Meanwhile, ECM Libra Investment Research believes the relatively high key performance indicators (KPIs) announced yesterday, may be a combination of Axiata comfortably surpassing its financial year 2009 KPIs and continuous improvements in its foreign operations.

Meanwhile, ECM Libra Capital Sdn Bhd raised Axiata to “buy” from “hold” after the company’s management set a revenue growth target of 12.1 per cent this year, exceeding ECM’s estimates. -- Bernama, Bloomberg