Public Investment Bank sees the recent share price weakness as a buying opportunity, maintaining an 'outperform' call on the telco with an unchanged target price of RM8.80. The house now assumes a higher dividend payout by Telekom from the financial year ending Dec 31, 2026 (FY2026) onwards, given growth across all segments and better capital outlay. It noted that Telekom has been paying 31.0 sen in total dividend per share (DPS) in FY2024 and FY2025 respectively, and it expects FY2026 DPS to be "at least on par with that at 31 sen". The house revised its DPS for FY2026/ FY2027/FY2028 by 25.5%/25.5%/19.4% to 31.0 sen/32.0 sen/32.0 sen respectively, translating into a more attractive dividend yield of 4.2%-4.3%, from 3.2%-3.5% previously. At press time on Tuesday, TM shares gained 10 sen or 1.4% at RM7.47, translating into a market capitalisation of RM28.7 billion.

Source: The Edge Markets March 17, 2026 02:30 UTC