Stock Name: SingTel
Company Name: SINGTEL
Research House: Citigroup
Company Name: SINGTEL
Research House: Citigroup
SingTel (Z74.SG) off 2.6% at 2-month low $2.96 as weak market sentiment, ongoing concerns over earnings visibility weigh, says Dow Jones.
Telco last week reported in-line fiscal 1Q11 earnings but warned of potentially lower contributions from associates in coming quarters.
Citigroup, which has Hold call with $3.00 target, says 5% dividend yield decent but notes competition getting more intense, with key earnings driver Optus at risk of losing market share to Telstra, while margins from Singapore operations remain under pressure with pay-TV content costs rising.
“The trends are distinctly negative biased in our view,” says SingTel. Near-term support at $2.87 (June 9 low).
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