BNP Paribas has started Singapore Press Holdings (T39.SG) at Reduce with $3.35 sum-of-parts target price, 24% below consensus view, according to Dow Jones.

BNP Paribas says consensus forecast has over-estimated value of media group’s newspaper and magazine business, hasn’t factored in potential deficit from overpaying for Singapore mall earlier this year.

The research house expects lower property income to offset recent pick-up in core media business, affect overall earnings growth.

“The significant contribution over the past three years was from the opportunistic development of Sky@Eleven (condo)”, completely sold in 2007 for $650 million.

Tips $0.01/share cut in dividends for FY11, FY12 on lower earnings. Expects sluggish growth for media business as online platform becomes more popular. Stock flat at $3.92.