Have been wondering if MTU is fully priced ATM but Citi thinks...

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.