Have been wondering if MTU is fully priced ATM but Citi thinks otherwise.
M2 TELECOMMUNICATIONS GROUP LIMITED
Citi rates as Buy - Initiation of Coverage (1) - The broker has initiated coverage on M2 Telecommunication with a Buy call and $4.60 price target, seeing upside coming from the recent Primus acquisition.
Further upside is also seen coming from expected NBN friction, a niche position in small to medium business, a focus on service and the potential to grow market share, notes Citi.
Multiples are attractive on both historical and relative grounds, says the broker and EPS growth of 12% in FY13 is expected.
MTU Price at posting:
$3.53 Sentiment: Buy Disclosure: Held
