Chong and Tan’s target price of $3.15 is based on a 10-year discounted cash flow (DCF) valuation, at a discounted rate of 7% and a growth rate of 2.0%, underpinned by improving fundamentals and a “decent” 6.1% FY2023 dividend yield.
UOB Kay Hian analysts have maintained their “buy” call for Singapore Telecommunications (Singtel) (SGX:Z74
) with no change to their target price of $3.15.
In their report dated March 17, Chong Lee Len and Llelleythan Tan say that Singtel’s business segments could see favourable tailwinds in 2023. Coupled with the price increases seen in January, the teleco’s Singapore consumer segment is set to experience higher data roaming revenue from China’s reopening.
