Brokers' take

M1 Limited | Underperform April 18 close: S$2.12 Target price: S$1.45 Credit Suisse, April 18

M1 had another weak quarter with total service revenue declining for the eighth consecutive quarter. The decline in service revenue was led by mobile, which fell 3.6 per cent YoY (year on year), and IDD (-10.9 per cent, YoY). The strong growth (22.4 per cent YoY) in fixed network services revenue largely compensated for the decline in mobile revenues. M1's Q1 17 Ebitda (earnings before interest, tax, depreciation & amortisation) declined 5 per cent YoY to S$79 million, 2.5 per cent below our estimates, reflecting the negative operating leverage resulting from the decline in service revenues and increased operating costs. We believe M1 is the most vulnerable to the potential entry of a fourth mobile operator. We believe the current stock price is not fully baking in the increasing competitive dynamics.

Keppel DC Reit | Neutral April 18 close: S$1.23 Target price: S$1.15 Phillip Securities Research (Singapore), April 18