NeraTel

NeraTel: DMG reiterates BUY, lifts TP to $0.72, pegged to the 5 yr historical avg of 9.8x FY14e P/E. Notes the company, which has largely been looked upon as a defensive stock, is now embarking on a journey of exciting growth. i) Supportive parent, Northstar, allows for potential collaborative opportunities with one of its telco eqpt businesses which owns and charters out radio masts and towers, ii) NeraTel's point-of-sales terminal (POS) business is set to grow from 220k terminals at the moment to 300k within a year, on the back of the boom in the SE Asia consumer market, boosting recurring revenue stream, iii) New Myanmar story -- NeraTel's entry involves both the telco infrastructure business and its POS business in Myanmar. DMG believes with time, NeraTel will make its name in the Myanmar market as its strong financial position and established track record puts it in a much more favorable position than its peers, eg. Ntegrator. The stock is +3.3% at $0.63.