 |
January 9, 2008 |
|
|
|
 |
TELKOM: CIMB-GK Securities Lowers Target Price by 23% CIMB-GK Securities has lowered its end-2008 target price for shares of PT Telekomunikasi Indonesia Tbk by 23% as tighter competition is likely to eat into earnings, Thomson Financial reports. According to the report, the brokerage has set a new target price of IDR11,300 from IDR14,600 previously. CIMB analyst Kelvin Goh explained that they maintain our neutral rating on the stock as concerns over greater competition are likely to cap the stock's ability to outperform, the report relates. On the other hand, downside risks should be limited by its fairly attractive dividend yield of over 4%, he added. The brokerage, the report notes, is now more cautious on Telkom because PT Excelcomindo Pratama is looking to lease its towers to other operators. Thomson Financial notes that CIMB reduced its 2008-2009 core net profit estimates by 7-8% after cutting subscriber net add assumptions by 3% and 8% respectively to account for greater competition arising from smaller rivals gaining access to Excelcomindo's 8,000 towers nationwide. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/ -- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 24, 2007, that Moody's Investors Service changed the outlook on PT Telekomunikasi Indonesia's local currency corporate family rating to positive from stable. At the same time Moody's has affirmed Telkom's local currency corporate family rating at Ba1. On Sep. 12, 2007, Fitch Ratings affirmed Telekomunikasi Indonesia's Long-term foreign and local currency Issuer Default Ratings at 'BB-'. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
