Silverlake Axis kept at 'Sell' with target price of $1.22 by OSK DMG

Stock Name: Silverlake Axis
Company Name: SILVERLAKE AXIS LTD

Research House: OSK-DMG

Price Call: SELL

Target Price: 1.22

SINGAPORE (Jan 21): OSK DMG is maintaining its "sell" call on Silverlake Axis with a target price of $1.03, now that the CIMB-RHB-MBSB merger, which could have provided Silverlake's largest deal, has been officially terminated.

With the deal off, potential orderbook could decrease by about MYR100 million ($37 million) and revenue from 2H16 onwards may be negatively impacted by lower topline growth.

"We do expect Silverlake to resume talks with RHB on its core banking upgrade project, though," said analysts Jarick Seet and Terence Wong in a Jan 20 report.