Tuesday, January 18, 2011

SingTel - Phillip cuts SingTel to $3.32, keeps 'hold'

Stock Name: SingTel
Company Name: SINGTEL
Research House: Phillip Securities


Phillip Securities has lowered its target price for Singapore Telecommunications (STEL.SI) to $3.32 from $3.52 and kept its “hold” rating.



Phillip said it expects SingTel to continue facing stiff competition in markets like India, Philippines, Indonesia, and Singapore.



It also noted that in Singapore, the launch of Next Generation National Broadband Network will allow competitors StarHub (STAR.SI) and M1 (MONE.SI) more opportunities to grab market share.


SingTel’s Australian unit Optus may also be affected by the floods in Australia, as Phillip expects the usage of telecommunications services to drop and its network could have also suffered from some damage.



Shares of Singapore Telecommunications have lost 0.64% since the start of last year to close at $3.09 on Monday.



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