KUALA LUMPUR, Nov 10 — Investment banks have set different outlooks on Maxis Bhd’s earnings per share for the financial years 2025 and 2026 (FY2025–FY2026) due to various factors including resilient postpaid growth, the 4G spectrum assignment offer as well as its third-quarter 2025 (3Q FY2025) results.

Hong Leong Investment Bank Bhd has raised its forecast on Maxis Bhd earnings per share (EPS) for the financial years 2025 to 2027 (FY2025–FY2027) by seven to nine per cent and lifted its discounted cash flow (DCF) based target price (TP) to RM4.45 from RM4.20 previously.

The research house reiterated its “Buy” recommendation, noting that it continues to favour Maxis for its resilient postpaid growth, strict cost execution and undemanding valuation at 18.4 times price-to-earnings (P/E) for the financial year 2026 (FY2026).

Echoing the forecast, Public Investment Bank Bhd has also raised Maxis’ earnings estimates for the financial years ending 2025 and 2026 (FY2025–FY2026) by three per cent, following the release of the group’s 3Q FY2025 results.

While the investment bank revised its target price to RM4.00 to factor in lower cost assumptions, it downgraded its recommendation on Maxis to “Neutral” from “Buy” previously, citing limited upside potential from the current share price.

“We are positive the additional spectrum would help to boost Maxis’ fourth-generation (4G) long-term evolution (LTE) network capacity and relieve congestion in densely populated urban areas. The spectrum pricing was fair and reasonable, considering that it is for a 12-year period at an annual fee of RM25 million,” it said.

Earlier, Maxis had secured a 4G LTE spectrum assignment offer from the Malaysian Communications and Multimedia Commission for RM400 million for a 2x10 megahertz (MHz) block of the 2100 MHz band, comprising an upfront payment of RM100 million and cumulative annual payments of RM300 million.

Meanwhile, MBSB Investment Bank has downgraded its recommendation for Maxis to “Neutral” from “Buy” previously, with a lower DCF-derived target price of RM3.90 from RM4.19 earlier, following the release of the group’s 3Q FY2025 results.

The investment bank said in a research note that Maxis continued to record sustained earnings performance during the quarter, underpinned by stronger revenue contributions from its postpaid and fixed and solutions segments.

“These segments helped offset the weakness in the prepaid segment, which remains a highly competitive market,” it said.

Similarly, CGS International Securities Malaysia Sdn Bhd said that although Maxis’ fourth quarter results tend to be weaker due to higher device-related costs, the group’s latest results remained within a reasonable range.

This projection was also due to Maxis’ third-quarter results released on Nov 7, posting a net profit of RM412 million, up 12.6 per cent year-on-year (y-o-y).

This brought its net profit for the first nine months of 2025 to RM1.18 billion, up 9.9 per cent y-o-y.

The figure represents 77 per cent of CGS International’s full-year forecast and 80 per cent of Bloomberg consensus estimates. — Bernama