While all three telcos reported weaker earnings over the latest financial quarter, the research house is reiterating its “buy” call on Singtel with a fair value of $4.19, highlighting the stock as its top pick which is supported by a forward dividend yield of 5.5%.
SINGAPORE (Nov 23): OCBC Research is remaining “neutral” on Singapore’s telco sector as it anticipates a decline in average revenue per user (ARPU) by 14-20% over the next years while TPG secures mobile revenue market share of about 6% by 2021.
In a Thursday report, lead analyst Eugene Chua notes that Singapore’s telcom sector has been underperforming the STI Index since the FTSE Straits Times Telecommunciations Index (FSTTC) started to diverge in March.
