SINGAPORE (Dec 19): UOB Kay Hian is maintaining its “underweight” call on the telecommunications (telecom) sector now that TPG Telecom has emerged victorious as Singapore’s fourth mobile operator.
The research house is keeping its “buy” recommendation on SingTel at a target price of $4.53 given that its Singapore-based mobile business accounts for 13% of group revenue, while reiterating its “sell” calls on M1 and StarHub at target prices of $1.76 and $2.40 for their vulnerability to increased competition ahead.
In a report last Thursday, analyst Jonathan Koh notes that competition in Singapore’s telecom sector has already intensified ahead of TPG’s entry as fourth mobile operator, as all three incumbents introduced “attractive” data upsize options this year.
