NERATEL: Weak results, target prices 80 c (RHB), 83.5 c (UOB KH)

Excerpts from analysts' reports on NeraTel

RHB Research says 'buy', target price 80 cents

Analyst: Jarick Seet

Despite dismal results due to forex loss, we are more optimistic, as:

1. Telecom and Network Infrastructure business revenue fared better, up 19.3% and 10.1% YoY in 1H16 respectively;

Nera Telecommunications’ (Nera) 1H16 order intake increased 29.3% YoY to SGD61m, with Singapore remaining the dominant contributor. Photo: Company
2. Underperforming POS business is to be sold off; 

3. We expect a special dividend of at least SGD0.16 by end-September. Total dividend yield will likely shoot up to 26%, with its recurring 2 cents dividend.

We think current price levels are very attractive; maintain TRADING BUY from a DCF-backed TP of SGD0.80 (19% upside).

Full report here.