Daiwa upgrades Starhub (CC3.SG) to Outperform from Hold, raising target price to $2.65 from $2.17 after changing valuation basis to dividend discount model from discounted cashflow methodology, says Dow Jones.

Daiwa says telco offers attractive dividend yield, well positioned to gain market share in corporate broadband market with launch of Singapore’s high-speed national broadband network.

“Our analysis suggests that the opportunities in the corporate market will more than offset the risks the company faces in the residential segment,” says Daiwa, who expects revenue growth for mobile business to be driven by increasing number of data-plan users, higher demand for inbound roaming services.

Shares +1.2% at $2.49.