(Aug 7): Since July 18 — when M1 announced that majority shareholders Singapore Press Holdings (SPH), Keppel Telecommunications & Transportation (KT&T) and Axiata Group had shelved a strategic review of their collective stake — shares of the telco have declined 12.51%.
Having outperformed its peers Singapore Telecommunications and StarHub since March this year, M1 is no longer the favourite. Year-to-date, the stock is down 8.9%. Singtel’s shares are up 5.8% and StarHub’s down 3.6%.
At least two analysts have downgraded their calls on the stock and Bloomberg data now shows an overwhelming 12 “sell” calls, against three “buy” and seven “hold” calls. If the company hopes to turn the negative sentiment, it will need to find a new source of growth.