Thursday, November 27, 2008

Analysts' reaction on TMI

While most of the bad news (such as the higher finance cost, losses in Sri Lanka and Bangladesh operations, lower Ebitda margin) have been factored-in by analysts and investors, they are still cautious on how TMI's new capital structure would be.

Among main concerns: will the new structure result in any dilution? if yes, by how much? will the new structure be able to accommodate its expansion plan in Iran?

TMI - which just announced that it has received the green light to bid for a mobile license in Iran via a consortium - said it will announce the structure early next year.

Several analysts have either lowered its target price or downgraded its recommendation. Citigroup, for example, has cut TMI's target price from RM5.40 to RM4.50. Target price ranges from RM3.49 (Affin) to RM7.50 (credit suisse).

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