| Rating | Target Price | Prev Rating | Prev Target Price | Brokerage | Date |
|---|---|---|---|---|---|
| HOLD | 3.26 | HOLD | 3.23 | Deutsche Bank | 17-08-10 |
| “ Stock has been slipping since reaching S$3.17 high earlier this month, with bland June-quarter results, cautious guidance reported last week further sapping interest. Having drifted in S$2.90-S$3.20 band for more than a year, "we see little reason for SingTel to break out of this range on a sustained basis either to the upside or downside," says Deutsche Bank ” | |||||
| HOLD | 3.00 | HOLD | 3.10 | Citigroup | 15-08-10 |
| “ Says 5% dividend yield decent but notes competition getting more intense, with key earnings driver Optus at risk of losing market share to Telstra, while margins from Singapore operations remain under pressure with pay-TV content costs rising; "the trends are distinctly negative biased in our view." ” | |||||
| SELL | 3.00 | UNDERPERFORM | 3.00 | CIMB-GK | 12-08-10 |
| “ Associate contributions were weaker due to: 1) Bharti, which was diluted by Zain Africa losses and financing costs. Going forward, we expect Zain’s losses to dilute Bharti’s earnings further as Zain only contributed 23 days to 1QFY11 results; and 2) Globe on stiff competition. ” | |||||
| HOLD | -- | BUY | -- | Phillip Securities | 12-08-10 |
| “ Cuts to Hold vs Buy, keeps fair value unchanged at S$3.43 after phone operator announces 2Q net profit down 0.2% on-year due to lower contribution from associates, fair value losses on foreign currency liabilities. Expects local rivals StarHub, M1 to offer bigger discounts on services, forcing SingTel to respond. Also, Indian associate Bharti Airtel faces intense competition. ” | |||||
| HOLD | 2.60 | NEUTRAL | 3.10 | Goldman Sachs | 05-07-10 |
| “ Intense competition in Australia's mobile phone sector likely to continue as a higher number of customers roll off 24 month contracts and new generation mobile handsets inspire replacements, according to Goldman Sachs JBWere analysts. "We believe the increasing number of postpaid subscribers 'up for grabs' will result in increased competitive intensity in the mobiles market," analysts says. Reckons that could prove an opportunity for Telstra given its lower penetration of smartphones and iPhone subscribers, but SingTel's Optus faces the challenge of protecting its existing base of iPhone customers signed up over the past two years. ” | |||||
| HOLD | 2.88 | HOLD | 3.06 | UOB-Kay Hian | 10-06-10 |
| “ "Recovery in SingTel's share price hinges on improvement in overall market sentiment, given that (its) regional mobile associates face headwinds," says UOB KayHian. Notes while Indian associate Bharti (532484.BY) has completed acquisition of Zain Africa to become world's 5th largest mobile operator by revenue and reach, "we find it hard to believe the growth story in Africa" with Zain still money-losing, Bharti now with increased debt and exposed to FX risks. ” | |||||
| BUY | 3.50 | BUY | 3.45 | Nomura | 25-05-10 |
| “ "SingTel is not without issues now, but looking across the region, most other large-cap telcos face various regulatory, competitive and investment challenges, while SingTel provides diversity at a reasonable price. Importantly, about two-thirds of its business (is) executing consistently with upside earnings potential," says Nomura ” | |||||
| HOLD | 3.15 | BUY | 3.42 | UBS Investment | 21-05-10 |
| “ Support tipped at S$2.73, 50% retracement of rise to 52-week high of S$3.52 from S$1.94 low in October 2008. "We believe the concerns at Bharti and Telkomsel will be an overhang for SingTel shares," says UBS, cites steep licence fees paid by Bharti for 3G spectrum in India, risk of Telkomsel's loss of market share in Indonesia as competition in data business intensifies. ” | |||||
| HOLD | 3.13 | BUY | 3.42 | Kim Eng | 13-05-10 |
| “ Citing lack of catalysts in immediate term, potential for more challenges, especially in India, where associate Bharti facing hefty costs for 3G spectrum bids and expecting lower earnings due to costs related to Zain buy; "while we still like the longer-term prospects of its strategic initiatives to build up pay-TV scale in Singapore and acquisitions in Africa, the short-term costs of these initiatives will depress profit growth." ” | |||||
| HOLD | 3.10 | EQUALWEIGHT | 3.10 | Morgan Stanley | 19-03-10 |
| “ Broker says this is because the stock has traded up recently, making the short term valuation much less attractive. Notes that the share prices of SingTel's key affiliates Bharti (532454.BY) and Telkomsel are down 7%-10% year-to-date whereas SingTel shares are up 3% year-to-date. Says SingTel's premium to net asset value has expanded to 5% currently from a 4% discount in early January. "We therefore see room for near term share price pressure." ” | |||||
| HOLD | 3.08 | NEUTRAL | 3.12 | Macquarie Research | 16-02-10 |
| “ Indian associate Bharti (532454.BY) is in talks to buy Kuwaiti telco company Zain's (ZAIN.KW) African unit with enterprise value of US$10.7 billion. "Deal multiple appears rich," says Macquarie, notes implied valuation is significant premium to fellow African telco firm MTN, which Bharti tried and failed to acquire last year, and Zain's African assets have seen sharp drop in profitability recently. Says deal structure and financing are key issues for SingTel shareholders; "risks to SingTel's earnings and ownership stake depend on how the deal is financed, and this is not clear at the moment." ” | |||||
| BUY | 3.50 | -- | -- | Stanchart | 11-02-10 |
| “ Expects SingTel to consolidate its market dominance, helped by its ownership of broadcasting rights for English Premier League matches; "we still believe the market is underestimating the importance of EPL. Singapore seems to be even more football-crazy than many markets, and as a result, deserves to have a premium placed on the content." ” | |||||
| BUY | 3.31 | OUTPERFORM | 2.99 | CLSA | 10-02-10 |
| “ Raised target after adjusting earnings forecasts following recent 3Q10 results. Lifts FY11, FY12 earnings forecasts by 1.6%, 3.6%, respectively, to factor in higher assumptions for Singapore and Optus mobile businesses. Says operating outlook seems solid; "stable margins and gradually improving revenue growth will be the theme for FY11." Maintains rating, says valuation attractive with stock trading at 11.7x FY11 PE ratio vs 5-year average of 12.8x and 4.5% dividend yield boosting shareholder returns. "Singtel offers a unique combination of defensiveness and growth." ” | |||||
| BUY | 3.72 | NEUTRAL | 3.40 | Credit Suisse | 08-02-10 |
| “ Upgraded on updated sum-of-the-parts valuation. Broker says stock now preferred pick among Singapore telcos due to attractive valuation, potential share price catalysts. Notes stock's significantly underperformed market, domestic telco peers over past 12 months, believes negative recent developments at regional associates, such as increased price competition for Bharti in India, now largely discounted. Says positive share price triggers in pipeline, "our analysis suggests that SingTel is likely to declare a special dividend; this could happen as early as May when the company reports its FY10 results." Also says potential listing of Australian subsidiary Optus also likely to be taken positively by market. ” | |||||
| HOLD | 3.40 | NEUTRAL | 3.05 | JPMorgan | 03-02-10 |
| “ Says company delivered a "good Singapore and Australia performance," with group operating profit 4.5% ahead of broker's forecast. ” | |||||
| BUY | 3.50 | HOLD | 3.15 | DBS Vickers | 31-01-10 |
| “ Upgraded, citing attractive valuations, improved earnings prospects for Indonesian associate Telkomsel. Notes stock trades at 11.6X P/E vs 12.3X for MSCI Asia (ex-Japan) telcos, 12.7X for Starhub (CC3.SG), 12.2X for MobileOne (B2F.SG). Says Telkomsel's improved earnings prospects should offset lower contributions from Bharti (532454.BY). Forecasts respective 30%, 13% rise in FY10, FY11 earnings for Telkomsel on stronger IDR vs SGD. Adds any listing of Optus could add S$0.50/share to SingTel's valuation. Raises target based on sum-of-parts valuation. ” | |||||
| HOLD | 3.11 | HOLD | 3.08 | RBS | 21-01-10 |
| “ RBS says Singapore telcos are well placed to benefit from rising domestic consumption, offer good way to play ramp up in tourist arrivals on back of opening of new integrated resorts. "The anticipated rise in tourist traffic should drive international-roaming revenues; this is important for Singapore telcos, which generate about 15% of their domestic mobile revenues from roaming." Raises target prices on back of higher roaming assumptions, roll forward of valuation year. ” | |||||
| HOLD | 3.19 | HOLD | 3.42 | BNP Paribas | 11-11-09 |
| “ Cuts target following fiscal 3Q10 results; maintains rating. Says lower target reflects assignment of 20% discount on target price for Indian associate Bharti. "This reflects our view that Bharti's share price is unlikely to rise to our target price in the near term as the Indian telco price war is expected to be a prolonged one." Adds, "we will look to remove the discount upon clearer signs of the price war in India abating." But says 2Q10 results tad ahead of forecast, raises FY10-FY12 earnings estimates by 2.5-5.3%, to factor in stronger mobile revenue in Singapore and Australia. ” | |||||
| BUY | 3.51 | BUY | 3.51 | OCBC Investment | 19-10-09 |
| “ Says SingTel's surprise clinching of the EPL rights makes it a "game-changer" in pay TV segment, while securing exclusive rights to ESPN STAR Sports channels is "another coup."Broker thinks the wins should help SingTel to lock in customers ahead of new national broadband network launch. But notes that on SingTel's recently announced pricing plan, it looks unlikely that company can recoup EPL cost via pay TV subscriptions alone, "we continue to favor SingTel's defensive earnings and potential to expand regionally." ” | |||||
| HOLD | 3.00 | HOLD | 3.19 | Daiwa Institute of Research | 08-10-09 |
| “ New target implies 13.1X FY10 P/E, 10% below average for Asian telcos. Notes recent launch of per-second billing by Tata DoCoMo, rollout of flat mobile tariff plan by Reliance Communications (532712.BY); "we think this could be the beginning of a long-drawn-out tariff war for the mobile sector, and believe Bharti Airtel may be forced to join the race." ” | |||||
| HOLD | 3.05 | -- | -- | AmFraser Securities | 15-09-09 |
| “ Australian government's plan to break up Telstra may pave way for Optus to gain more market share, which has yet to be priced in. But once split takes place, analysts say outcome will be positive for Optus; "a structural separation of Telstra would bring about effective open access and equivalent pricing between Telstra's retail arm and other service providers, thus leveling the playing field for fair competition," ” | |||||
| BUY | 3.45 | BUY | 3.33 | Bank of America-Merrill Lynch | 14-08-09 |
| “ increases FY10-11 earnings forecasts by 2%-3% to reflect improved outlook for Indonesian associate Telkomsel, favorable FX prospects. Notes Telkomsel's pretax profit for fiscal 1Q10 ended June +27% on-quarter, +19% on-year in IDR terms due to cost savings, subscriber growth. Expects Singapore operations to remain resilient as corporate demand holds up amid more stable economic conditions. Tips further upside for Singapore business if demand for iPhone 3GS (launched in July) stronger than expected. ” | |||||