Company Name: STARHUB LTD
Research House: UOB KayHian
UOB Kay Hian has lowered its target price for StarHub (STAR.SI), Singapore's second-biggest telecommunications firm, to $3.10 from S$3.36, but maintained its buy rating.
StarHub said on Friday its fourth quarter net profit rose 8.4% to $80.4 million from a year earlier, helped by higher revenue from mobile and fixed network services.
UOB Kay Hian said it has lowered its 2011 net profit forecast by 11% to $308.8 million to take into account StarHub's investment in a submarine cable system and roll-over of capital expenditure for Singapore's Next Generation Nationwide Broadband Network (NGNBN) to the first half of this year.
The brokerage added that StarHub would be able to reach out to corporate customers with its data services only in the second half of 2011 as NGNBN becomes more pervasive, and the firm may lose 30,000 residential broadband customers due to competition.
At 9:37 a.m., StarHub shares were down 0.38% at $2.60 on a volume of 840,000 shares.
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