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Nomura Equity Research cut its price target on Advanced Info Service Pcl (AIS), Thailand's largest mobile phone operator, to 260 baht from 269 baht, reflecting uncertainties during the 3G rollout.
AIS shares were up 0.5 percent at 201 baht, with a year-to-date loss of 3.5 percent versus second-ranked Total Access Communication's year-to-date loss of 1.7 percent and True Corporation's year-to-date gain of 20.2 percent.
The broker said AIS' recent capex outlook of 70 billion baht ($2.34 billion) was higher than its earlier forecast and consensus forecasts.
"Despite current concerns on licensing and network structure in the 2G concession structure, we expect far more clarity in the coming 12-18 months as 3G customer take-up picks up and legacy agreements are resolved," the broker said in a note dated Feb. 18.
The broker reiterated its 'buy' rating.
"We are cognizant of the capex/competition/dividend risks, but still believe AIS is well positioned to navigate through this phase," it said.
(Reporting by Viparat Jantraprap in Bangkok; Editing by Prateek Chatterjee)
$1 = 29.865 baht