M1 - M1 target raised to $2.50 by DBS Vickers, keeps Buy

Stock Name: M1
Company Name: M1 LIMITED
Research House: DBS Vickers

DBS Vickers lifts M1 (B2F.SG) target price to $2.50 from $2.30 after raising FY11-12 earnings estimates by 2%-5% to factor in more optimistic assumptions for broadband business, says Dow Jones.

 

DBS Vickers tips broadband revenue growth of 50% in FY11 to $42 million on low-base effect, then $54 million in FY12, driven by demand from small, medium enterprises. Keeps Buy call.



Broker says if M1's capex-to-sales ratio for FY11 lower than 12%, free cash flow would be higher, potentially resulting in special dividends or capital management exercise. Shares flat at $2.21.