Brokers' take

Telcos | Neutral OCBC Investment Research, Feb 21

All three listed telecommunications service providers in Singapore ended 2017 with muted results. Looking ahead, the telecom sector will remain under pressure with the entry of two new Mobile Virtual Network Operators (MVNOs) as well as the impending entry of TPG.

Based on the closing price on Feb 20, we deem M1's valuations fair with forward price to earnings (PE) and forward enterprise value to Ebitda (EV/Ebitda) trading at 0.7 and 1.2 standard deviations below five-year averages, respectively, reflecting its muted outlook.