UBS Downgrades M1 Limited

Posted by Drizzt
July 28, 2010

After a string of favorable Analyst reports on M1 Limited we finally see UBS downgrading it, in line with my analysis here:

UBS downgrades M1 (B2F.SG) to Neutral from Buy, citing weak free cash flow, reduced likelihood of special dividend, limited broadband revenue upside when Singapore’s high-speed national broadband network rolls out in coming months, says Dow Jones.

UBS says free cash flow down 66% on year in 1H10 at $30 million due to increased working capital needs arising from sale of smartphones: “We expect M1’s cash flows to remain weak in 2H10 because the iPhone 4 will be launched on 30 July 2010 and capex is seasonally higher in 2H”.

Research house notes while national broadband network will open new revenue stream for M1: “The question is how well M1 will be able to execute” as gaining wireline subscriber market share from SingTel (Z74.SG), StarHub (CC3.SG) likely to be difficult. Sets target price at $2.17. Shares off 0.5% at $2.22.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It  contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly  here.

UBS Downgrades M1 Limited pixel

Related posts:

  1. M1 Limited Q2 2010 Results:Increases customer base
  2. M1 Limited Third Quarter Results
  3. Yield Watch: M1 Limited Strong move yesterday. Ex Div today
  4. High Yield Investing:M1 Limited Just kept rising
  5. M1 Limited best loved stock by analysts
Dividend Investing, High Yield Investing

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