Singtel has set a goal of monetising $9 billion in assets, with the proceeds earmarked for $5 billion in dividends, a $2 billion share buyback and $2 billion in growth initiatives. It has already begun the buyback, repurchasing roughly $50 million worth of shares since Feb 27, earlier than JPMorgan had anticipated.
The analysts see room for the monetisation target to increase as the value of several portfolio companies has risen. “If the asset monetisation target is increased, Singtel could increase its planned dividends and buybacks and/or support shareholder distributions over a longer period, in our view,” they write in a March 6 note.
Even after a 122% total shareholder return since Jan 2024, JPMorgan believes Singtel’s underlying non-listed assets “remain deeply discounted” at a forward Ev/Ebitda of three times. Buybacks and asset recycling could help narrow that discount.
Growth in the infrastructure businesses is also expected to support earnings. The launch of 58 megawatts of additional data centre capacity in Singapore last month should drive stronger contributions from the segment.
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In Australia, Optus added about 27,000 wireless customers quarter-on-quarter, while average revenue per user (ARPU) remained stable in 3QFY2026 despite the disruption caused by the Triple Zero outage. The analysts believe Optus can gradually improve ARPUs if its customer base remains resilient, and the stronger Australian dollar — up about 6% since September 2025 — could provide a FX tailwind to earnings.
JPMorgan analysts say they increased the target price to $5.80, mainly due to the roll forward to March 2027 and a higher P/E multiple of 20 times, up from 19 times previously. “We apply a higher target multiple due to the capital recycling programme and earnings growth potential of the non-listed assets supporting the stock’s rerating,” write the analysts.
However, they “moderately lowered” their earnings per share (EPS) forecasts for FY2027 and FY2028 by 1% to 3% as they lowered their earnings forecasts for Bharti Airtel, which Singtel has a stake in. Their projections also do not yet incorporate Singtel’s recent acquisition of STT GDC.
As at 11.40 am, shares in Singtel are trading 8 cents lower, or 1.6% down, at $4.92.
