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Why Singtel remains OCBC's sole 'buy' pick in a subdued sector

Michelle Zhu
Michelle Zhu11/23/2017 11:35 AM GMT+08  • 3 min read
Why Singtel remains OCBC's sole 'buy' pick in a subdued sector
SINGAPORE (Nov 23): OCBC Research is remaining “neutral” on Singapore’s telco sector as it anticipates a decline in average revenue per user (ARPU) by 14-20% over the next years while TPG secures mobile revenue market share of about 6% by 2021.
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SINGAPORE (Nov 23): OCBC Research is remaining “neutral” on Singapore’s telco sector as it anticipates a decline in average revenue per user (ARPU) by 14-20% over the next years while TPG secures mobile revenue market share of about 6% by 2021.

In a Thursday report, lead analyst Eugene Chua notes that Singapore’s telcom sector has been underperforming the STI Index since the FTSE Straits Times Telecommunciations Index (FSTTC) started to diverge in March.

While all three telcos reported weaker earnings over the latest financial quarter, the research house is reiterating its “buy” call on Singtel with a fair value of $4.19, highlighting the stock as its top pick which is supported by a forward dividend yield of 5.5%.

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