In a Thursday report, DBS Group Research analyst Sachin Mittal says he continues to expect StarHub to cut its dividends in FY19F in order to match its net profit level, as the group’s equity valued will be wiped out by 2020 should it maintain similar dividend payments such as the $277 million it has committed to pay in annual dividends in FY18.
SINGAPORE (Sept 6): DBS and RHB are maintaining their “hold” and “neutral” calls on StarHub with the respective price targets of $1.42 and $1.78, while CGS-CIMB Research’s “add” call remains unchanged with a target price of $1.85.
While all three research houses are positive on recent news of telco’s latest joint venture (JV) with Temasek unit Leone Investments to form a cybersecurity entity, Ensign, their forward estimates remain largely unchanged as they believe it will take time for the development’s earnings impact to kick in.
