SINGAPORE (July 27): RHB Research is maintaining its “buy” call on software services and solutions provider Silverlake Axis with an unchanged target price of 65 cents on early signs of the start of banks’ capex spending cycle.
According to lead analyst Jarick Seet, banks in Southeast Asia were generally cutting capex in the last few years, which resulted in Silverlake Axis’ orderbook falling as well. The company specialises in providing end-to-end core banking system to banks and other financial institutions.
“Management is bullish, as it believes this is the start of banks’ capex spending cycle,” Seet says in a report on Friday. “Management is encouraged by the latest signs shown by customers, which raised orderbook to 380 million ringgit ($127.4 million), after a few major contract wins.”
