“That said, we remain constructive on Singtel’s longer-term outlook. Singtel’s openness to an Australian partner taking a meaningful minority stake in Optus points to potential value realisation through monetisation,” says Chu Peng of OCBC Group Research, referring to Singtel’s separate announcement on the same day that it is looking for a minority stake partner for its Australia unit. “We believe Singtel’s growth opportunities in AI and data centres, alongside monetisation optionality, remain intact and should continue to support earnings growth and shareholder returns over time,” adds Chu, who has kept her “buy” call and $5.75 fair value.
From the recent peak of $5.21 in March, the share price of Singapore Telecommunication (Singtel) has dropped by around 14% to close at $4.48 on May 26, including 10% lost after its FY2026 report on May 21. The downtrend contrasts with Singtel’s doubling over the last two years, following the launch of its Singtel28 capital management programme, together with its FY2024 results.
Some analysts who have maintained their bullish calls on this stock suggest that investors, used to a string of good news, are disappointed that Singtel is not raising its asset monetisation target. At Singtel’s last full-year report in May 2025, it raised the asset monetisation target from $6 billion to $9 billion, and launched a $2 billion share buyback programme. No new capital management targets were unveiled on May 20, when Singtel reported its FY2026 results.
