KUALA LUMPUR (Oct 27): AffinHwang Capital Research has maintained its “Buy” rating on DiGi.Com Bhd at RM5.53 with a lower target price of RM6.30 (from RM6.70) and said the weak ringgit squeezed DiGi’s 9M15 earnings indirectly on lower usage and directly due to higher IDD traffic costs.

In a note today, the research said that unsurprisingly management expects 2015 service revenue growth to be at the lower end of its low-to-mid single digit guidance given the tepid 9M15 service revenue growth.

It said with the weak ringgit both a drag to topline growth (consumers have less to spend) and bottomline (stronger US$ increases IDD traffic costs), the research house expects the outlook to remain challenging for DiGi in the short term.

“Also, we see that price competition has yet to soften significantly in IDD and data.

“Nonetheless, unless the ringgit deteriorates further, we continue to like its LTE leadership. Maintain Buy, but target price lowered to RM6.30,” it said.