Stock Name: SingTel
Company Name: SINGTEL
Research House: Credit Suisse
Company Name: SINGTEL
Research House: Credit Suisse
SingTel (Z74.SG) is up 0.7% at $2.93 in strong volume of 23 million shares. Credit Suisse says the stock is worth another look, trading at an undemanding 10.4X FY12 P/E.
It has an Outperform rating and $3.73 target price, implying 28% potential upside, and notes the stock is expected to generate a 6% dividend yield, while it trades at a 23% discount to the Singapore market following recent underperformance.
The house says affiliate Bharti’s (532454.BY) Africa targets are not aggressive: “While there is a risk of slippage either on timing or on investments required, we believe that market expectations are too negative. As such, any near-term improvement and more details about African performance could result in Bharti’s rerating.”
It has an Outperform rating and $3.73 target price, implying 28% potential upside, and notes the stock is expected to generate a 6% dividend yield, while it trades at a 23% discount to the Singapore market following recent underperformance.
The house says affiliate Bharti’s (532454.BY) Africa targets are not aggressive: “While there is a risk of slippage either on timing or on investments required, we believe that market expectations are too negative. As such, any near-term improvement and more details about African performance could result in Bharti’s rerating.”
The house also says despite a more competitive landscape, “we expect Optus to deliver 7%-10% earnings growth over the next few years.” The house adds, notwithstanding the interim dividend increase, ”we continue to see capital management as one of the catalysts for the stock.”
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