OCK stock price is RM0.80.
RHB said buy, with OCK target price of RM1.06.
RHB said the following....
A recent meeting with management suggests that OCK is on track to meet our FY15 projections while our FY16 estimates appear conservative should major M&As materialise over the next few months. Maintain BUY and MYR1.06 TP (35% upside). The key risk remains a potential cash call. Investors should, however, adopt a slightly longer-term view given the attractive regional towerco proposition, which will allow the group to scale up and drive a new leg of earnings.
Maintain BUY. Our TP is based on fair 16x 2016F EPS, supported by the more than doubling in projected core earnings for 2015 and a PEG of 0.3. The ventures into the regional towerco space are not without execution risks but opportunistic in our view to drive the next leg of earnings growth and strengthen the group’s base of recurring revenues. Our forecasts have yet to factor in any regional towerco M&As and/or contract wins. Hence, FY16 numbers appear conservative.