KUALA LUMPUR (Sept 25): Shares of DiGi.Com Bhd dipped 1.09% in early trade today after CIMB Research downgraded the stock to “Reduce” (from Hold).

At 9.37am, DiGi lost 6 sen to RM5.42 with 651,600 shares done.

In a note today, CIMB Research said after an 8% bounce in its share price over the last four weeks, the research house  downgraded DiGi from a Hold to a Reduce with an unchanged DCF-based target price of RM5.15 (WACC: 7.0%), which had already been rolled over to FY16.

“Given its high prepaid and migrant workers revenue mix, DiGi’s earnings are most at risk of being impacted by more intense competition.

“In addition, the weaker rimggit will also put pressure on its EBITDA margin as international traffic costs are priced in US dollars,” it said.