Silverlake Axis sees silver lining in banks' spending recovery

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SINGAPORE (June 20): RHB is maintaining its “buy” call on Silverlake Axis with a target price of 65 Singapore cents.

The group’s financial performances for FY17-18 have been poor as regional banks pull back on major IT spending the past two years.

(See: Silverlake posts 93% drop in 3Q earnings to $9.74 mil on significantly lower other income)

In a Wednesday report, analysts Jarick Seet and Lee Cai Ling says, “However, we understand these banks are now open to large IT capex again, with some needing to upgrade core banking systems. This trend is justified by Silverlake’s contract wins over the last few months and orderbook at near record highs... (Click here to read the full story)