KUALA LUMPUR, Nov 16 — RHB Research Institute Sdn Bhd has maintained a "buy” call on Telekom Malaysia Bhd (TM) with an unchanged target price of RM7.30, as the group's third-quarter revenue is expected to grow at a steady rate driven by the Internet segment.

In a note today, the research house said, TM was slated to announce its results for the third quarter ended Sept 30, 2017 (3Q17) on Nov 22, 2017, where the revenue was anticipated to rise by between four and five per cent year-on-year.

"We see little earnings surprises with 3Q17 revenue, and earnings before interest and taxes are likely to track in line with its guidance or key performance indicators, backed by robust Internet revenue growth,” it said.

However, RHB Research said, the government’s directive to lower broadband prices by 50 per cent in 2019 remained a key de-rating catalyst for the stock.

"The final outcome, however, is not likely to be punitive in our view given that TM contributes significantly to the nation's coffers and is proactively addressing the broadband affordability issue via lower-priced variants in the market,” it said.

At 10.46am, TM's share price was unchanged at RM6.00 with 228,100 shares traded. — Bernama