Maxis Bhd (RM5.32; Hold; Price Target: RM5.60; MAXIS MK)
Long term dividends
• We initiate coverage on Maxis with a HOLD call as it offers only 5% capital appreciation to DCF-based price target of RM5.60.
• Maxis’ 4.5% dividend yield is higher than the 2.7% yield under our universe of coverage, but is below Digi’s 5%.
• Maxis trades at 12% premium to Digi in terms of FY11F EV/EBITDA.
• Valuation upside limited.
source: HDBS Vickers