RHB Group Research is keeping its "buy" call on Singapore Telecommunications (Singtel), albeit with a lower target price of $3.00 from $3.30 previously, while keeping the stock as its preferred Singapore telco pick. 

In a July 13 report, the RHB research team says, "We believe share price re-rating catalysts could come from mobile revenue hitting an inflection point in 1QFY2022 (Mar); good enterprise ICT momentum from strong public sector pipeline; and value unlocking from asset sales."

To that end, the team expects y-o-y decline in mobile revenue to bottom out in 1QFY2022 due to the low base effect arising from the imposition of the Circuit Breaker in 2Q2020, and stronger economic activities under Singapore’s Phase 3 re-opening.

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