Stock Name: SingTel
Company Name: SINGTEL
Research House: UOB KayHian
“SingTel benefits from buoyant domestic consumption in Singapore but its regional businesses are increasingly facing tougher competition. Emerging economies in this region also face risk of higher inflation and weaker currencies. For example, the Indian rupee has weakened by another 2.4% against the Singapore dollar so far this quarter, which affects earnings contribution from Bharti (Airtel),” the house says.
Company Name: SINGTEL
Research House: UOB KayHian
UOB KayHian cuts Singapore Telecommunications’ (Z74.SG) target to $3.07 from $3.17 after the operator reports a better-than-expected net profit Thursday on a resilient local market even as its associates faltered.
“SingTel benefits from buoyant domestic consumption in Singapore but its regional businesses are increasingly facing tougher competition. Emerging economies in this region also face risk of higher inflation and weaker currencies. For example, the Indian rupee has weakened by another 2.4% against the Singapore dollar so far this quarter, which affects earnings contribution from Bharti (Airtel),” the house says.
It adds that the Singapore central bank is likely to maintain a strong Singapore dollar to combat imported inflation, which will continue to depress contributions from its regional mobile associates. It keeps the stock at Sell.
SingTel is up 0.7% at $3.07.
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