KUALA LUMPUR (Dec 12): Shares of Astro Malaysia Holdings Bhd dipped on Friday morning after analysts said the outlook for the Pay-TV operator was challenging and cut their prices for the stock.

At 11am, Astro was down 1.8% or six sen to RM3.27 with 1.26 million shares done.

Astro’s net profit fell 8.33% to RM113.41 million in the third quarter ended Oct 31, 2014 (3QFY15) from RM123.71 million a year ago, due to higher tax expenses, amortisation of software, and higher depreciation of property, plant and equipment.

AffinHwang Capital Research has maintained its “add” rating on Astro Malaysia Holdings Bhd at RM3.33 with a lower target price of RM3.60 (from RM3.70).

In a note Friday, the research house said it expects the market environment to be more challenging going forward, with lower pay TV net adds and higher costs.

“FY15-17E core EPS forecasts are cut by 5%-9% and our DCF-derived target price is also lowered to RM3.60,” it said.

Mewnwhile, MIDF Research maintained its “neutral” rating on Astro with a lower target price of RM3.60 (from RM3.75) and said Astro’s 9M15 earnings came in slightly below its expectation.

“Maintained Neutral with revised target price of RM3.60 due to expected slower net adds for the Pay-TV segment,” it said.