- Management continues to be very confident of the FY10 guidance. We believe this acquisition is value added to the business, and increase our price target from $2.61 to $2.66 and re-iterate our BUY recommendation
- We believe this acquisition is value-add for the business and given managements track record, we believe MTU will continue to deliver growth through organic and acquisitive growth.
- Unlike the rest of the listed telco peer group, MTU is mainly wholesale. Which means other telcos consider it as a customer, not a competitor. MTUs business model is highly suitable in a wholesale only NBN environment, as its current business is wholesale.
- We believe future bolt-on acquisitions are still highly probable given the telco space is ripe for acquisitions and MTU is capable of adding significant value to many of its smaller competitors assets due to its scale and management capability.
