Stock Name: SingTel
Company Name: SINGTEL
Research House: Nomura
“This is around a 10% discount to regional peers – compelling but not dirt cheap, in our view,” Nomura said in a report.
Company Name: SINGTEL
Research House: Nomura
Nomura has raised its target price on Singapore Telecommunications (SingTel) (STEL.SI) to $3.42 from $3.35 and maintained its neutral rating.
Nomura said SingTel is currently trading at a price-earnings ratio of 12.7 times for its 2012 financial year ending March, or 11.6 times for Singapore and its Australian unit Optus combined.
Nomura said SingTel is currently trading at a price-earnings ratio of 12.7 times for its 2012 financial year ending March, or 11.6 times for Singapore and its Australian unit Optus combined.
“This is around a 10% discount to regional peers – compelling but not dirt cheap, in our view,” Nomura said in a report.
SingTel is expected to either increase its payout or engage in some form of capital management, Nomura said, adding that there are no acquisitions on the horizon and the firm’s associates are all self-funded.
The brokerage said competition is rising in regional markets, but SingTel’s associates have strong market positions, balance sheets and earnings outlooks.
At 10:38 a.m., SingTel shares were down 1% at $3.03 on a volume of 4.8 million shares.
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