Friday 29 Mar 2024
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KUALA LUMPUR (March 28): RHB Research Institute Sdn Bhd has maintained its “Buy” rating on Astro Malaysia Holdings Bhd with a target price of RM3.08 and said it expects Astro to report in line 4QFY17 results (due March 28) with positive quarter-on-quarter revenue/EBITDA growth, arising from steady ARPU, content cost optimisation, and adex outperformance.

In a note today, the research house said Astro’s adex continues to buck industry trends (9MFY17: +13% y-o-y) with the group well positioned to capture the structural adex shift in favour of non-traditional/digital mediums.

“Maintain Buy and DCF-derived TP of MYR3.08 (8% upside, WACC: 9%, TG: 1.5%).

“Astro remains our preferred exposure to the media sector for its resilient pay-TV business and strong free cash flow,” it said.

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