Despite falling earnings, mobile apps are still growing at a robust pace which could add to data traffic and the bottom line.
"With strategic backing from entities keen to enter the Singapore market, M1 fortunes could change," adds KGI.
M1, which jumped 8% Friday on the buyout potential, has lost half its market value the past 2 years to recently trade around 7-year lows.
Shares of M1 are down 3 cents at $2.14.
