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Time for investors to switch out from StarHub into Singtel, says OCBC

Michelle Zhu
Michelle Zhu2/21/2018 11:19 AM GMT+08  • 3 min read
Time for investors to switch out from StarHub into Singtel, says OCBC
Singapore (Feb 21): OCBC is recommending that investors switch out of StarHub and into Singtel given the latter’s diversified and more stable earnings base, and being the only telco whose latest earnings results met the research house’s expectations.
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Singapore (Feb 21): OCBC is recommending that investors switch out of StarHub and into Singtel given the latter’s diversified and more stable earnings base, and being the only telco whose latest earnings results met the research house’s expectations.

This comes as the research house maintains its “neutral” view on the local telco sector, with a “buy” recommendation for Singtel at a fair value estimate of $4.15, and “sell” for StarHub with a $2.20 fair value.

In a Wednesday report, lead analyst Eugene Chua says the fact that all three listed telcos in Singapore ended CY17 with muted results points to one thing: that is, higher competition in a saturated market translating to underperformances.

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