“The holding company discount has expanded to 36% (vs a 21% average over the last seven years) due to a sharp decline in the core business in Singapore and Australia in FY2021. We expect the holding company discount to narrow to 10-15% due to a sustained multi-year improvement in the core business from FY2022 onwards,” says Mittal in an Aug 26 report.
DBS Group Research is keeping a “buy” recommendation on Singapore Telecommunications (Singtel) with an increased target price of $3.13 from $3.01 previously, on improving core business and higher market value of Globe Telecom for its fintech business.
Analyst Sachin Mittal believes that the telco is poised or a recovery and that the stock is trading at 36% holding company discount based on the market cap of its associates.
