In a Wednesday report, lead analyst Eugene Chua says the fact that all three listed telcos in Singapore ended CY17 with muted results points to one thing: that is, higher competition in a saturated market translating to underperformances.
Singapore (Feb 21): OCBC is recommending that investors switch out of StarHub and into Singtel given the latter’s diversified and more stable earnings base, and being the only telco whose latest earnings results met the research house’s expectations.
This comes as the research house maintains its “neutral” view on the local telco sector, with a “buy” recommendation for Singtel at a fair value estimate of $4.15, and “sell” for StarHub with a $2.20 fair value.
