TA: Hold from buying Maxis

A contrasting view from TA.

TA cuts call on Malaysia's Maxis to hold
12.01.09, 08:33 PM EST
Dec 2 (Reuters) - Maxis Bhd:

* Cuts call on Maxis to hold from buy as share price has appreciated 7% since listing.
* Because of that, total upside to target price, inclusive of the dividend yield is less than 15%.
* Pegging a PER of 17x against its estimated FY10 numbers Maxis should be valued at RM5.80.
* Taking the 75% dividend payout policy as announced, we estimate FY10 dividend to be around 25.6 sen per share.
* Our valuation implies a dividend yield of 4.4%. On EV/EBITDA basis, our valuation implies a multiple of 9.12x on FY10 EBITDA.

Source: Forbes