SINGAPORE (Nov 12): OCBC is maintaining its “buy” rating on SingTel as it continues to like the company’s defensive business and strong cashflow. The research house is however paring its fair value to $4.17 from $4.38 to account for lower market value of its listed associates.

In a Thursday report, analyst Carey Wong says, “As 1HFY16 results were mostly in line with expectation, we opt to keep our full-year estimates unchanged.”

SingTel this morning reported its 2QFY16 results, which were mostly in line with OCBC’s expectations. Revenue slipped 2.9% to $4.2 billion, weighed by the 13% decline in the AUD; but in constant currency terms, operating revenue grew 5.1%. Net profit slipped 0.8% to $1 billion.

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