M1 downgraded to "neutral" by CIMB; $3.80 target intact

Stock Name: M1
Company Name: M1 LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 3.80

SINGAPORE (April 14): CIMB has downgraded M1 to "hold" from "add", saying the stock's current valuations are fair with the company's enterprise value at 16.2 times its operating free cash flows.

CIMB's price target of $3.80 is intact.

Following a q-o-q decline in its 1Q2015 revenue, M1 should benefit from an average price hike of $2 to $3 for its monthly post-paid plans, as well as from additional data usage revenue as subscribers move to tiered pricing plans, CIMB analyst Foong Choong Chen wrote in a note.