SingTel (Z74.SG) is off 2% at $2.94 vs S$3.03 in early trade (+1.0%) as better fiscal 4Q10 results, dividend not enough to ease concerns over increasing competitive pressure facing telco, its associates.

“Likely factors to depress the share price are rising content costs in Singapore, regulatory risks in India and earnings dilution from Bharti's acquisition of Zain Africa,” says CIMB, which has Underperform call with $3.30 target.

Deutsche Bank, which has Hold call with $3.26 target, says while 4Q10 performance robust, share price expected to stay in $2.90-$3.20 band near term as catalysts lacking.

Net profit for March quarter +12.4% on year at $1.02 billion vs $997 million tipped in Dow Jones poll. Telco proposing final dividend of $0.08/share, bringing FY10 payout to $0.142/share (4.7% yield), up 14% on year.