While she expects Singtel’s consumer revenue to continue contracting into 2019 due to lower roaming revenue and shift towards SIM-only plans, the analyst notes that its digital businesses and ICT services have grown rapidly over FY18 to register three-year revenue CAGR of 61% and 8%, respectively, driven by cyber security services, smart nation prospects and cloud services.
SINGAPORE (Mar 21): UOB Kay Hian is maintaining its “buy” call on Singtel with a target price of $3.58, while highlighting that the stock, at the price of $3.02, is currently below its mean EV/EBITDA with a 5.8% dividend yield.
In a Thursday report, analyst Chong Lee Len says she continues to like Singtel for its customer-centric offerings and diversification across the region, as well as lean cost structure.
