UOB Kay Hian analysts Chong Lee Len and Chloe Tan have upgraded telecommunications company StarHub to “buy” due to recovery trends in 2H20.

The target price on the telco, however, have remained unchanged, as its share price has fallen 18% year-to-date.

“We believe 2020 weak earnings have been largely factored in as the stock is currently trading close to -2SD below its mean EV/EBITDA of 8.6x. At our target price, the stock trades at 6.7x 2021F EV/EBITDA, or -1 standard deviation (SD) below mean valuation,” say the analysts.

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