Company Name: STARHUB LTD
| Research House: Maybank Kim Eng | Price Call: BUY | Target Price: 3.50 |
Maybank Kim Eng increased the target price of Singapore’s second biggest telecom firm StarHub to $3.50 from $3.20, highlighting its strong dividend yield.
“Given its rather lazy balance sheet currently, we will be on the lookout for indications of a dividend hike in coming quarters, but even without any, the current yield is still attractive at 6.3%,” the broker said in a report and kept its buy rating.
Kim Eng pegged StarHub’s first-quarter net profit at $85 million, up 8% from the previous quarter’s adjusted $79 million. It expects StarHub’s mobile business to outperform, with data revenue boosted by smartphones and tablets.
StarHub’s shares were up 0.3% at $3.21 in a flat market, and have gained 10% so far this year, underperforming the market. StarHub reports quarterly results on May 4.
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