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Citibank downgrades Netlink to ‘sell’, citing interest rate hikes and interconnection rate cuts

Lim Hui Jie
Lim Hui Jie1/7/2022 03:34 PM GMT+08  • 2 min read
Citibank downgrades Netlink to ‘sell’, citing interest rate hikes and interconnection rate cuts
Citibank has downgraded Netlink NBN Trust from a ‘buy’ to a ‘sell’ and dropped its target price from $1.08 to 90 cents.
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Citibank analyst Luis Hilado has downgraded his rating for Netlink NBN Trust to a “sell” from a “buy” rating, as well as sharply dropping his target price from $1.08 to 90 cents.

In a Jan 7 report, Hilado says that Netlink’s review of its regulated asset base (RAB) rates could come “sooner than expected” from the Infocomm Development Authority, and this will cause a “period of uncertainty”, in his view.

The RAB pricing model governs the prices set for some of Netlink’s services, such as those related to residential connections, Non-residential connections, NBAP and segment fibre connections, as well as ducts and manholes service revenue.

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