Stock Name: StarHub
Company Name: STARHUB LTD
Company Name: STARHUB LTD
| Research House: DMG | Price Call: HOLD | Target Price: 2.90 |
DMG & Partners has raised its target price for Singapore telecommunications firm StarHub (STAR.SI) to $2.90 from $2.80 and kept its neutral rating.
DMG has raised its target price for StarHub after the firm said it would increase its subscription rate for its cable TV subscribers by $2 a month with effect from August 1.
DMG estimates that the rate hike would raise StarHub’s cable TV revenue by 4-13% for 2011-2012, and its overall revenue forecasts for the same period by about 2%, it said in a report.
DMG has raised its target price for StarHub after the firm said it would increase its subscription rate for its cable TV subscribers by $2 a month with effect from August 1.
DMG estimates that the rate hike would raise StarHub’s cable TV revenue by 4-13% for 2011-2012, and its overall revenue forecasts for the same period by about 2%, it said in a report.
“While there is always risk of customers downtrading to cheaper packages, we expect the majority of viewers to retain their existing plans given that Starhub still offers the most compelling pay-tv content,” said DMG.
At 10:01 a.m., shares of Starhub were up 0.36% at $2.76, and have gained 4.9% since the start of the year.
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