Telekom Malaysia cut to underperform at Kenanga; price target RM2.50

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KUALA LUMPUR (Feb 27): Kenanga Investment Bank Bhd analyst Cheow Ming Liang downgraded the recommendation on Telekom Malaysia Bhd to underperform from market perform.

* Price target (PT) set to RM2.50, implies 16% decrease. Telekom Malaysia average PT is RM2.72.

* Telekom Malaysia had 5 buys, 13 holds, 10 sells previously: Bloomberg data

* Analysts lowered their consensus one-year target price for the stock by 3.2 percent in the past three months. Forecasts range from RM1.89 to RM4.25. 

Performance Metrics

* Investors who followed the analyst's recommendation would have received a negative 38 percent return in the past year, compared with the negative 49 percent return on the shares. 

* Telekom Malaysia reported earnings that trailed and sales that topped estimates for the quarter on Feb 26.