KUALA LUMPUR (Oct 21): Digi.Com's outlook doesn't seem great according to TA Securities, which expects a tough prepaid segment will drag the Malaysian mobile network operator's service revenue and Ebitda down for the year.
The broker keeps a sell rating on Digi.Com's stock with an unchanged target price of RM4.25 on the grounds that it is fairly valued at current levels.
TA further reckons that Digi.Com's respective 2019, 2020 and 2021 forward dividend yields of 4.0%, 4.2% and 4.3% aren't attractive enough in view of the challenges the company faces in the prepaid segment. Digi.Com last closed at RM4.69.