Company Name: SINGTEL
| Research House: CIMB | Price Call: HOLD | Target Price: 3.36 |
CIMB Research has upgraded Singapore Telecommunications (SingTel) (STEL.SI), Southeast Asia's largest telcom firm, to neutral from underperform and raised its target price to $3.36 from $3.19.
CIMB said it expects SingTel to report a 10% year-on-year increase in its core net profit for April-June, helped by strong contributions from Singapore, its Indonesian associate PT Telekomunikasi Selular (Telkomsel) and Thailand associate Advanced Info Service (AIS).
The brokerage also raised its target price for SingTel to account for higher forecasts from AIS and Bharti Airtel, its Indian associate.
"Our key concern for SingTel is the prospect of rising competition in Australia and the strengthening Singapore dollar, which could dilute its overseas contributions," CIMB said in a report.
At 9:19 a.m., shares of SingTel were 1.7% higher at $3.00 and have fallen 1.6% since the start of the year.
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