In a Thursday note, RHB says Singtel’s 9M18 ended Dec results which were announced this morning came in line with its expectations, backed by stronger showing at wholly-owned subsidiary Optus but offset by weaker associate contributions and the tight competition in Singapore.
SINGAPORE (Feb 8): RHB is upgrading Singtel from "neutral" to "buy" with unchanged target price of $4.10 after its share price hit a 52-week low over the past two weeks on broader market weakness and worries over inflationary expectations in the US.
Year to date, Singtel has underperformed relative to its domestic peers and the benchmark STI Index. The stock is trading at 10 times FY18F EV/EBITDA, below its 12 times five-year historical mean, with share price supported by its diversified regional exposure and attractive FY18 dividend yield of 6%.
