Stock Name: StarHub
Company Name: STARHUB LTD
Maybank Kim Eng Research in a Mar 27 research report says: "StarHub has outperformed its two peers, up 5% since early this year. However, it is still a good story for 2012, with potential catalysts from lower subscriber acquisition costs as Android devices appear to be gaining ground.
"In addition, we expect the new Vodafone roaming alliance to boost ARPUs. For the 2011 mandate year, StarHub repurchased 2.1 million shares, above 2010’s 2 million shares, although average cost was 10% higher at $2.87 (up to $2.91). Since the share buyback is another way to enhance shareholder value, other than paying good dividends, the higher average cost is a firm endorsement of the stock’s value despite the outperformance.
"Target price raised to $3.33, based on target yield of 6% (pegged to the average yield of the top 15 dividend stocks with market cap over $1 billion under our coverage). MAINTAIN BUY."
Company Name: STARHUB LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 3.33 |
Maybank Kim Eng Research in a Mar 27 research report says: "StarHub has outperformed its two peers, up 5% since early this year. However, it is still a good story for 2012, with potential catalysts from lower subscriber acquisition costs as Android devices appear to be gaining ground.
"In addition, we expect the new Vodafone roaming alliance to boost ARPUs. For the 2011 mandate year, StarHub repurchased 2.1 million shares, above 2010’s 2 million shares, although average cost was 10% higher at $2.87 (up to $2.91). Since the share buyback is another way to enhance shareholder value, other than paying good dividends, the higher average cost is a firm endorsement of the stock’s value despite the outperformance.
"Target price raised to $3.33, based on target yield of 6% (pegged to the average yield of the top 15 dividend stocks with market cap over $1 billion under our coverage). MAINTAIN BUY."
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