KUALA LUMPUR (Aug 21): Telekom Malaysia's earnings are likely to be pressured by continued price erosion of its Unifi product and rising capital expenditure to phase out its copper network, UOB Kay Hian says. 

The broker downgrades the fixed-line operator to sell from hold, and cuts its target price to RM3.60 from RM3.80. 

It adds that the stock has gained more than 50% year to date and earnings recovery has largely been priced in. 

UOB Kay Hian also forecasts a drop in Telekom Malaysia's dividend yield to 3.5% in 2020.