IIFL starts SingTel at 'Add', target $3.29

Stock Name: SingTel
Company Name: SINGTEL

Research House: IIFL

Price Call: BUY

Target Price: 3.29

Indian stockbroker IIFL has initiated coverage of Southeast Asia’s largest telecommunications firm Singapore Telecommunications (STEL.SI) with an “Add” rating and target price of $3.29.

For IIFL, add means the stock is expected to give a positive return of above 10% within 12 months.

IIFL said SingTel gives investors exposure to long-term growth opportunities in Asia and Africa, where the group has a dominant market position in many countries. 

However, IIFL said SingTel’s Singapore operations may face pressure as entry barriers have been reduced with the rolling out of Singapore’s nationwide high-speed broadband network. SingTel’s size and full-service range have historically given the firm an edge.

SingTel’s Australia operations may also face competition in the wireless space, the brokerage noted.

At 11:25 a.m., shares of SingTel were 0.31% lower at $3.17, but have gained 3.9% since the start of the year.