KUALA LUMPUR (March 19): Kenanga Research has upgraded Telekom Malaysia Bhd (TM) to “Market Perform” at RM3.22 with a higher target price of RM3.10 (from RM2.50) and said TM is planning to adopt a more active asset management stance to strengthen its balance sheet.

In a note today, the research house said it was positive on the plan as it could address the current low yield of its non-core properties.

“All in, we maintain FY19-20Eearnings but raised the stock to Market Perform with higher DCF-derived target price of RM3.10 in view of better cash management ahead,” it said.

The research house, while making no changes to its FY19-20E earnings for now, pending the outcome of the tender process, said TM is on the right track to enhance operational efficiency and strengthen its balance sheet via active asset management.