KUALA LUMPUR (Feb 10): Axiata Group's Indonesia subsidiary XL Axiata may face competitive pressure this year as industry peers are more aggressive in launching affordable packages, AmInvestment Bank says. 

While XL's revenue growth is likely to continue, profit sustainability may be constrained by rising competition over the long term, the brokerage says.  

It maintains a buy rating on Axiata with an unchanged stock price target of RM4.90. 

For a regional operator with prospects of monetizing its multiple businesses, Axiata currently trades at a bargain 5x forecasted enterprise value-to-earnings before interest, tax, depreciation and amortization ratio for FY 2020, versus Maxis' 13x EV/Ebitda ratio, it says.