SINGAPORE (July 4): BNP Paribas Securities has a “buy” call on Singapore Telecommunications with a higher $4.55 target price vs $4.36 earlier.

“Any resulting share price weakness could be an opportunity to accumulate,” says analyst Wei Shi Wu.

Last week, shares of SingTel rose 8.7% as investors looked at the stock as a defensive play amid market volatility, following the UK’s referendum to leave European Union.

Wei says Singtel’s operational outlook is “stable to positive”, something that should continue to underpin the earnings of the biggest company in Singapore by market value.

SingTel’s free cash flow may also drive dividend per share of 9% until 2019.

“This should be viewed positively by investors looking to add defensiveness to their portfolios.”

The only dampener to the company’s earnings potential is the volatility in foreign exchange market as this could hurt earnings from other markets in the region.

As at 4.07pm, shares of SingTel are down 0.2% at $4.13.