TA Research cuts target for Axiata stock from MYR 2.60 to MYR 2.40

Published on 10/02/2026 at 15:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Axiata's first-half revenue fell to MYR 5.67 billion from MYR 5.86 billion. For Axiata stock this means a 5.5 sen interim dividend.

Axiata, MYL6888OO001, Illustration mit AI erstellt.

Axiata Group Berhad (MYL6888OO001) is navigating weaker reported earnings alongside a new shareholder payout. According to The Star on September 2, 2026, TA Research lowered its target for Axiata from MYR 2.60 to MYR 2.40 while retaining a Buy view. The change reflected a higher conglomerate discount of 45.00 percent, compared with 40.00 percent previously.

Analyst targets diverge

The target reduction highlights the tension between Axiata's portfolio strategy and near-term earnings pressure. The Star reported that Hong Leong Investment Bank Research kept a Buy rating with a MYR 2.55 target, while Kenanga Research maintained Market Perform and cut its target from MYR 2.05 to MYR 1.95.

The same report said BIMB Research maintained a Buy rating and a MYR 3.00 target. Its cited operating indicator was the Indonesian unit's second-quarter 2026 loss, which narrowed 61.00 percent quarter over quarter to IDR 282 million from IDR 716 million.

First-half profit falls

According to Markets Insider on September 7, 2026, Axiata's underlying PATAMI more than doubled to MYR 717.20 million in the first half of 2026. Reported revenue grew 7.30 percent on a constant-currency basis, although it fell 3.20 percent on a reported basis to MYR 5.70 billion.

The Star gave the statutory comparison in greater detail: first-half 2026 revenue declined to MYR 5.67 billion from MYR 5.86 billion, while net profit fell to MYR 316.32 million from MYR 430.66 million. The figures show why analysts are separating underlying operating progress from reported earnings affected by foreign-exchange effects and other costs.

Dividend supports the valuation debate

Markets Insider reported that Axiata declared a first interim dividend of 5.5 sen per ordinary share for the first half of 2026. The release also said the group received MYR 875.30 million in dividends from operating companies during the period, giving the payout a cash-flow connection beyond the quarter's reported profit.

Bursa price and market value

On Bursa Malaysia, Axiata was last at MYR 1.64 on October 2, 2026 at 4:56 p.m. MYT, up 1.23 percent from MYR 1.62. The same market snapshot places the 52-week range at MYR 1.60 to MYR 2.79 and market capitalization at MYR 15.1 billion. The company trades as AXIATA.KL in the Communication Services sector, according to Global Banking and Finance Review.