The analyst notes that StarHub’s transformation-related operating expenses (opex) are expected to drop to $12 million in FY2025 ending Dec 31, 2025, compared to FY2024’s opex of $23 million. Costs are projected to decline to zero in FY2026.
DBS Group Research analyst Sachin Mittal has named StarHub (SGX:CC3
) as his new telecommunications (telco) sector pick after the telco is expected to benefit from its lower transformation costs. The analyst has a “buy” call for StarHub with an unchanged target price of $1.54.
StarHub, Singapore’s second-largest telco player, is building a digital platform with multi-cloud capabilities through its DARE+ transformation programme. “Meaningful realisation” is expected to start from FY2025 onwards after costs taper off, says Mittal in his report on the telco dated Oct 15.
