Stock Name: SingTel
Company Name: SINGTEL
Kim Eng Research in an Aug 26 research report says: "We are upgrading SingTel to a BUY following the recent plunge in its share price that has pushed dividend yield to a relatively attractive 6% and valuations down to 2009 troughs.
"With this upgrade, we now have BUY calls on all three Singapore telcos as we expect the flight to quality to continue, with or without QE3. We also note that SingTel CEO Chua Sock Koong recently bought 728,000 shares at $3.01-3.02 per share, a sign of insider confidence.
"Our target price is $3.41, based on 14x FY Mar12 forecast, slightly below its peer group average of 15.2x. With free cash flow comfortably exceeding dividend commitments, we forecast a DPS of $0.17-0.179 for FY Mar12-13, yielding 5.6-5.9%. UPGRADE TO BUY."
Company Name: SINGTEL
| Research House: Kim Eng | Price Call: BUY | Target Price: 3.41 |
Kim Eng Research in an Aug 26 research report says: "We are upgrading SingTel to a BUY following the recent plunge in its share price that has pushed dividend yield to a relatively attractive 6% and valuations down to 2009 troughs.
"With this upgrade, we now have BUY calls on all three Singapore telcos as we expect the flight to quality to continue, with or without QE3. We also note that SingTel CEO Chua Sock Koong recently bought 728,000 shares at $3.01-3.02 per share, a sign of insider confidence.
"Our target price is $3.41, based on 14x FY Mar12 forecast, slightly below its peer group average of 15.2x. With free cash flow comfortably exceeding dividend commitments, we forecast a DPS of $0.17-0.179 for FY Mar12-13, yielding 5.6-5.9%. UPGRADE TO BUY."
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