StarHub - Starhub cut to Sell from Hold by Citi on valuations

Stock Name: StarHub
Company Name: STARHUB LTD
Research House: Citigroup

Citigroup downgrades Starhub (CC3.SG) to Sell from Hold as stock has breached $2.47 target price.



Says while 7% dividend yield attractive, sustainable, valuations not appealing.



Says stock trades at premium to M1 (B2F.SG), faces greater risk due to material exposure to fixed broadband market, “which will be under threat from the next-generation national broadband network.”



Adds, pay-TV business also facing increased competition from SingTel (Z74.SG), which has already secured 31% market share within 3 years of operation; “this is particularly risky for StarHub with pay-TV accounting for 17% of group revenues.”



Shares off 1.1% at $2.70; STI down 0.3%.