Kuwait - Mubasher: KAMCO Research set the Price Target (PT) for Kuwait Telecommunications Co.(Viva) at 0.971 per share with a ‘Neutral’ rating.
KAMCO said it cut Viva PT in order to reflect the new market scenario of an upgraded competition, mature market and homogenous product offerings.
The research house said it continues to expect a moderating subscriber growth for Viva and in fact a fall in subscriber numbers in the near term towards a more realistic and paying customer base.
Viva continued to report lower y-o-y subscriber count reported at 2.4 million down from 2.5 million a year ago, noted KAMCO.
In addition to competition, KAMCO believes that subscriber recycling in order to save cost could also be one of the reasons, as highlighted by the management of Viva, for the marginal decline in subscribers during the past two quarters.
