Stock Name: StarHub
Company Name: STARHUB LTD
CIMB in a Nov 1 research report says: "StarHub should not be too affected by the iPhone launch, thanks to more rational subsidies so far though the degenerating economics of pay TV is a concern. NBN take-up is slow and this should blunt competition in the residential market where StarHub is dominant.
"While 4Q margins could be affected, this should only be a blip. Industry rationality is probably inspired by a rather saturated smartphone market where 65-70% of postpaid users now possess smartphones and any ARPU uplift is unlikely to be material.
"We keep our earnings forecasts but roll over our target price to end-2012, which lifts our DCF-based target price of $3.08 (WACC 8.6%). Catalysts expected from slower competition in NBN, stabilising margins and a stable dividend outlook. MAINTAIN OUTPERFORM."
Company Name: STARHUB LTD
| Research House: CIMB | Price Call: BUY | Target Price: 3.08 |
CIMB in a Nov 1 research report says: "StarHub should not be too affected by the iPhone launch, thanks to more rational subsidies so far though the degenerating economics of pay TV is a concern. NBN take-up is slow and this should blunt competition in the residential market where StarHub is dominant.
"While 4Q margins could be affected, this should only be a blip. Industry rationality is probably inspired by a rather saturated smartphone market where 65-70% of postpaid users now possess smartphones and any ARPU uplift is unlikely to be material.
"We keep our earnings forecasts but roll over our target price to end-2012, which lifts our DCF-based target price of $3.08 (WACC 8.6%). Catalysts expected from slower competition in NBN, stabilising margins and a stable dividend outlook. MAINTAIN OUTPERFORM."
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