Stock Name: M1
Company Name: M1 LIMITED
Most of the incremental growth is currently coming from consumers taking on additional devices, which offer only marginal ARPU uplift potential, Nomura said.
Company Name: M1 LIMITED
| Research House: Nomura | Price Call: BUY | Target Price: 3.30 |
Nomura has raised its target price on Singapore telecommunications firm M1 (MONE.SI) to $3.30 from $2.51 and maintained its buy rating.
Nomura said M1 expects to maintain its current share of the wireless market of around 26% but it sees broadly flat average revenue per user (ARPU) as 60% of the firm’s subscriber base is now made up of smartphone customers.
Nomura said M1 expects to maintain its current share of the wireless market of around 26% but it sees broadly flat average revenue per user (ARPU) as 60% of the firm’s subscriber base is now made up of smartphone customers.
Most of the incremental growth is currently coming from consumers taking on additional devices, which offer only marginal ARPU uplift potential, Nomura said.
M1’s costs of handset sales had risen sharply mainly due to iPhone sales which attracted higher subsidies, but the firm now expects costs to remain broadly in check with iPhones accounting for less than 50% of new sales.
Nomura said there is also scope for M1 to win customers in the fibre segment as well as pay-TV, though content will remain a key differentiator.
At 11:20 a.m., M1 shares were down 0.8% at $2.48 on a volume of 199,000 shares. The stock has risen 5.5% so far this year.
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