SINGAPORE (Mar 14): OCBC is initiating Netlink NBN Trust (NLT NBN) at “buy” with a target price of 91 cents.

In a Wednesday report, analyst Eugene Chua says, “NetLink NBN Trust’s (NLT NBN) nationwide network, in our view, is the foundation of the Next Generation Nationwide Broadband Network (Next Gen NBN) over which ultra-high-speed internet access is delivered throughout mainland Singapore and its connected islands.”

Currently, NLT NBN’s network is the only fibre network with nationwide coverage in Singapore.

The analyst believes that the group has a resilient business model, since the usage of fibre broadband service have been increasing due to the growing demand to stay connected and rapid growth in data consumption from both residential and non-residential end-users.

“Hence, we believe NLT NBN will be able to weather through various economic cycles given the defensive nature of its income streams,” says Chua.

Looking ahead, the analyst believes that the group has room to grow with the development of new residential areas as well as increase penetration rates.

NLT NBN is also expected to be a key participant of growth in other connected services within the non-residential and Non-Building Address Points (NBAP) space, especially with Singapore’s push to transform into a digital economy.

The analyst expects the group to deliver distributions to unitholders of $170.1 million in FY18 on an annualised basis, $181.1 million in FY19 and $185.4 million in FY20.

As at 11.32am, shares in Netlink NBN are trading at 82 cents.

OCBC starts Netlink NBN Trust at 'buy' with 91 cents target price

VTAC proposes business combination with live streaming platform 17LIVE

Data is the new oil but is it as dirty?

'Transition credits' could sweeten deal for early retirement of coal-fired power plants: MAS, McKinsey paper

DPM Lawrence Wong appointed as GIC’s deputy chairman

Will the Rising Sun keep rising?

Trade Stocks, ETFs, Forex and Futures with Phillip Nova:

Citi ups TP while DBS keeps 'buy' call on Singtel following long-awaited divestment of loss-making Trustwave

DBS keeps 'buy' call on ESR-LOGOS REIT following sale of Tuas property at above valuation

OCBC starts Netlink NBN Trust at 'buy' with 91 cents target price

Related News

Highlights

VTAC proposes business combination with live streaming platform 17LIVE

Related News

Citi lowers Parkway Life REIT’s TP to $3.85 due to higher portfolio cap rate and higher discount rate

Mapletree’s group of REITs are a ‘great place to be in’, says DBS

Maybank upgrades UMS to ‘buy’ with higher TP of $1.44