StarHub - Starhub target raised to $2.25 by Nomura; Keeps Reduce

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

Nomura lifts Starhub (CC3.SG) target price to $2.25 from $1.90 after raising FY10-11 earnings estimates by 3%-16%.



Tips “significant opportunity” in SME/enterprise segment over next few years on back of Singapore’s next-generation national broadband network.

Says current dividend yield of over 7% highest among peers, expected to be sustainable for at least next 12 months.



Still, keeps Reduce call on view stiff competition will take toll; “rising competition in the pay-TV segment could be exacerbated by cross-carriage regulations next year, and rising smart-phone penetration could impact margins adversely.”



Shares +0.4% at $2.67.



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