M1 - M1 target lifted to $2.60 by CIMB; Keeps Outperform

Stock Name: M1
Company Name: M1 LIMITED
Research House: CIMB

CIMB lifts M1 (B2F.SG) target price to $2.60 from $2.20 after increasing FY11-12 core earnings estimates by 9%-17% to account for potential impact of Singapore’s upcoming next-generation national broadband networ, keeping its Outperform call, says Dow Jones.

“We believe M1 will benefit the most from NGNBN as it will be able to address the fixed broadband market on a level footing, and add a new revenue stream. It also has capital-management potential and benefits from soaring inbound visitors,” says the research house.



CIMB adds if M1 can achieve management’s target of 20% market share in broadband segment by 2015, revenue and core earnings could increase by 22%, 18% respectively from FY10 levels. Shares +0.5% at $2.16.