DBS Group Research analyst Sachin Mittal has maintained his “buy” call on Singapore Telecommunications (Singtel) with a higher target price of $2.93 from $2.75, as he believes the market is currently undervaluing the counter.

To him, Singtel’s core business is trading at 55%, below his fair value of 58 cents per share, from 46 cents previously.

“The market value of Singtel’s associates is $2.18 per share after factoring in a 10% holding company discount. Singtel’s current share price implies that the market is valuing its core business in Singapore and Australia at only 25 cents compared to our fair value of 58 cents per share,” he writes in a May 25 report.

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