"Sentiment on the stock could be low currently, weighed by post-rights dilution concerns, but we believe renders the risk-reward attractive," it said.
The research house lowered its FY20 and FY21 assumptions by 11% and 3% in anticipation of some shortfall in 2QFY20 earnings from its non-recurring income stream.
However, it expects the weakness to be made up for in 2HFY20, which typically accounts for about 60% of yearly earnings.
Kenanga lowered its target price to 61 sen and ex-rights target price to 56.5 sen but raised its recommendation to "outperform".
According to the research house, telco network services should return in 2HFY20 and rejuvenate OCK's key managed services and tower engineering contract revenues to supplement its recurring tower leasing revenue.
On the domestic front, national fiberisation and connectivity plan (NFCP) awards in the coming months should both directly and indirectly benefit the tower operator.
Meanwhile, earnings are expected to be boosted 1% to 2% give the savings from lower interest rates, Kenanga added.
The research house also noted that OCK is seeking to participate in the large-scale solar (LSS) 4 bids.
Unlike LSS3, LLS4 is directed for greater local participation, which should increase OCK's chances for a portion of the 1GW national solar energy tender.
The group also aspires to expand its solar farm portfolio with an existing capacity of 11.24MW.
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