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Singtel well positioned to weather competition, looking cheap at current prices: UOB Kay Hian

Michelle Zhu
Michelle Zhu3/21/2019 12:37 PM GMT+08  • 2 min read
Singtel well positioned to weather competition, looking cheap at current prices: UOB Kay Hian
SINGAPORE (Mar 21): UOB Kay Hian is maintaining its “buy” call on Singtel with a target price of $3.58, while highlighting that the stock, at the price of $3.02, is currently below its mean EV/EBITDA with a 5.8% dividend yield.
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SINGAPORE (Mar 21): UOB Kay Hian is maintaining its “buy” call on Singtel with a target price of $3.58, while highlighting that the stock, at the price of $3.02, is currently below its mean EV/EBITDA with a 5.8% dividend yield.

In a Thursday report, analyst Chong Lee Len says she continues to like Singtel for its customer-centric offerings and diversification across the region, as well as lean cost structure.

While she expects Singtel’s consumer revenue to continue contracting into 2019 due to lower roaming revenue and shift towards SIM-only plans, the analyst notes that its digital businesses and ICT services have grown rapidly over FY18 to register three-year revenue CAGR of 61% and 8%, respectively, driven by cyber security services, smart nation prospects and cloud services.

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