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Analysts see silver lining despite difficult 2HFY20 for Silverlake Axis

Ng Qi Siang
Ng Qi Siang5/20/2020 03:21 PM GMT+08  • 5 min read
Analysts see silver lining despite difficult 2HFY20 for Silverlake Axis
Silverlake Axis's profits have taken a hit from Covid-19, but some analysts are drawn to its attractive valuation.
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SINGAPORE (May 20): Despite forecasting a poor 2HFY20 on the back of a bearish Covid-19-hit economy, most analysts have maintained “hold” calls on Silverlake Axis on the back of attractive valuations for the software firm.

How the firm - which specialises in software for the finance industry -- performs going forward, will depend on the willingness of banks and financial institutions to keep up with their IT capital expenditure post-crisis.

“Silverlake Axis reported a weaker 3QFY20, below our estimate. It also guided for a weaker 4Q20, due to the Movement Control Order (MCO) in Malaysia. Large deals continue to be a challenge to close, with many delayed by MCO measures or economic uncertainties,” report RHB analysts Jarrick Seet and Lee Cai Ling.

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