DiGi upgraded on likely dividend

DiGi.Com Bhd, a Malaysian mobile phone operator, was upgraded to “buy” at OSK Research Sdn Bhd to reflect expectations of a dividend “windfall payout” in its financial year 2011.

The share estimate was increased to RM27.90 from RM24.40, Jeffrey Tan, an analyst at OSK, said in a report today.

His previous rating for the stock was “neutral,” according to data compiled by Bloomberg.

Meanwhile, MIDF Research is maintaining a "buy" call on DiGi following its growth potential for data revenue.

"As expected, DiGi's strong growth was driven by data revenue growth coming from the popularity of smartphones," it said in a research note today.

DiGi recorded a double digit financial year 2010 revenue and net profits growth of 10.1 per cent year-on-year and 17.1 per cent year-on-year respectively, despite being in a saturated market.

ECM Libra Investment Research is maintaining a "hold" call on DiGi but with a higher target price of RM25. -- Bernama