KUALA LUMPUR: UOB Kay Hian Malaysia Research has upgraded the telecommunication sector to Overweight from Market Weight on expectations of stable earnings, sustainable dividend and attractive valuations.
The research house said on Monday it expects stable earnings (relative to market), sustainable dividend and attractive valuations. Its top picks are Axiata and Digi.
“The sector is currently trading at 24 times FY20F price-to-earnings (PE) and seven times FY20F enterprise value/earnings before interest, tax, depreciation and amoritsation (EV/Ebitda).
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