SingTel - SingTel cut to Neutral by Nomura; $3.45 target

Stock Name: SingTel
Company Name: SINGTEL
Research House: Nomura

Nomura downgrades SingTel (Z74.SG) to Neutral from Buy on limited upside to $3.45 target price, according to Dow Jones.



Nomura says “along with rising competitive headwinds in its key markets, we do not see many near-term catalysts for outperformance or earnings upgrades”.



Research house adds Australian unit Optus continues to be star performer but earnings from other businesses will likely be volatile. Notes higher dividend payout ratio positive (55%-70% vs 45%-60% previously) but “still appears conservative” given telco’s strong cash flows.



Shares last off 0.3% at $3.30.