RHB Group Research’s Singapore research team has kept its “neutral” recommendation on StarHub with an unchanged target price of $1.38, as it expects the telco’s earnings to remain “under pressure”.

“FY2021 core earnings are projected to drop 16% y-o-y, compared to its 15.1% y-o-y drop in FY2020, before recovering some 10% y-o-y in FY2022 due to the rebound in mobile revenue,” writes the team in a report dated April 6.

The lower figures are estimated despite its IT transformation exercise, cost normalisation and extended weakness in its roaming/IDD fees.

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