Return on invested capital (ROIC) accretion at Optus is expected to continue, aided by postpaid price repair and receding inflationary pressures despite risks from Tier-2 rivals.
RHB Bank Singapore remains positive on Singapore Telecommunications (Singtel), citing sustained growth levers and a firm shareholder return narrative as key investment merits. It has maintained its “buy” call with a raised target price (TP) of $4.90, up from $4.70 previously.
Growth engines include NCS, Optus, Nxera and Airtel, supported by capital recycling initiatives. “A greater leverage on artificial intelligence complements its unsurpassed infrastructure assets and portends margin upside. We lift FY2026 to FY2028 earnings by 2.4%, 6.6% and 5.0% on stronger Optus and associate (Airtel) prospects,” wrote RHB analysts in a Sept 8 note.
