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‘Buy’ StarHub as its favourable tailwinds are coming; telco industry ripe for market consolidation

Samantha Chiew
Samantha Chiew • 4 min read
‘Buy’ StarHub as its favourable tailwinds are coming; telco industry ripe for market consolidation
Interesting times ahead for StarHub.
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UOB Kay Hian is reiterating its “buy” recommendation on local telco player StarHub with a target price of $1.41, as analysts Chong Lee Len and Llelleythan Tan believes that the group is set to reach an inflection point in 2H2024 and is reaching the tail end of its DARE+ investment programme.

To recap, StarHub had embark on a business transformation called DARE+ back in November 2021. With DARE+, StarHub intends to achieve sustainable revenue growth and potential growth in dividends, with superior product margins from the continued introduction of new 5G products and solutions; further operating cost savings through digitalisation and migration from legacy systems; and progressive declines in fixed cost through sustained evolution of operating models.

Its goal for DARE+ is to double down on digital across everything StarHub does, accelerating value creation, realising growth without frontiers, and delivering an endless continuum of experiences that enrich customers’ lives.

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