SilverLake Axis

SilverLake Axis: UOB Kay Hian has Buy Calls with $0.83 TP (Technicals) and $0.91 TP (Fundamentals) Note that thanks to its successful track record with a 100% execution rate, SAL dominates in the Southeast Asian market with more than 40% of the region’s top 20 largest banks under its client portfolio. House expect it to continue dominating as the choice IT vendor in this high barrier-to-entry industry. It will ride on the positive trends in Asia Pacific’s banking sector, which includes rising IT investment, M&As and cross-border banking. SAL’s financials are backed by visible earnings and a growing recurrent revenue stream. It boasts superior margins and ROE on cost competitiveness. Strong cash generation will support dividend payouts and earnings-accretive M&As. Our BUY recommendation comes with a street-high DCF-based target price of $0.91. Technically, the stock could be supported above $0.53 for further upside towards $0.83.