Stock Outperform Call: M1 with price target of 2.37 by Daiwa!

Daiwa Institute of Research says it has begun covering MobileOne Ltd with an "outperform" rating and a six-month target price of 2.37 sgd, saying the cellphone carrier is a defensive yield play. Daiwa said in a note that Mobile One had defensive qualities, high-quality management and dividend-yield support. But it remarked: "We believe the growth outlook is not exciting and that the company may find it difficult to broaden its pure-mobile focus in the near term." The brokerage expects MobileOne to post a rise in net profit for this year of 0.6 pct to 161.9 mln sgd, and that its net profit will grow to 165.3 mln sgd next year and to 173.5 mln sgd in 2008. At 2.15 pm, MobileOne was unchanged at 2.12 sgd.