However, that discount has now compressed to approximately 7%, an eight-year low, leaving what Mittal describes as limited scope for further re-rating. The shift reflects diverging share price performance between Singtel and its largest associate, Bharti Airtel.
DBS Group Research analyst Sachin Mittal has downgraded Singapore Telecommunications (Singtel) to “hold”, citing limited upside after a sharp re-rating. He has lowered his target price to $5.36 from $5.71 previously.
Over the past 12 months, Singtel’s share price has risen more than 51%, with about half of the gains driven by a narrowing holding company (HoldCo) discount. The rest came from higher valuations of its regional associates and a modest re-rating of its core business.
