Tuas Bull Sees Chances of License Loss Diminishing
Dow Jones
Sep 25
2348 GMT - Tuas's bull at Citi is growing more confident that the Singapore-focused telco will keep its mobile license. Analyst Siraj Ahmed lowers the probability from 20% to 10% that Tuas's Simba subsidiary loses its license due to its unauthorized spectrum use. His base case remains that Simba will keep its license but pay some kind of penalty. Despite the possibility of a more adverse regulatory outcome, Ahmed keeps a buy/high risk rating on the stock. He lowers his revenue forecasts, telling clients in a note that recent slower-than-expected subscription growth is unsurprising given competition and regulators' attention. Citi lowers its target price on the stock by 12% to 2.95 Australian dollars. Shares are at A$1.79 ahead of the open.
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