DBS Group Research is reiterating its “buy” call on Singtel, but with a lowered target price of $3.04, from $3.09 previously. 

Analyst Sachin Mittal said the revised target price is largely due to continued weaknesses in Singtel’s Australian and Singapore businesses. Contributions from Australia to the group’s bottom line is likely to be affected by the sharp sequential decline of National Broadband Network (NBN) migration fee, coupled with roaming weakness, partly offset by lower handset losses. 

He added contributions from home turf is unlikely to see fair weather either as both roaming and pre-paid revenues will continue to be suppressed by travel restrictions. Enterprise revenues too are likely to suffer from projects getting postponed amidst Covid-19.

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