UOB Kay Hian raises target on StarHub

Stock Name: StarHub
Company Name: STARHUB LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 3.25

UOB Kay Hian increased its price target on Singapore’s second biggest telecom firm StarHub to $3.25 from $3.09 and maintained its hold rating.

StarHub shares were up 1% at $3.16, having risen 8.6% so far this year and underperforming the broader index.

The brokerage tweaked its revenue forecasts based on an anticipated faster pace of growth for fixed network services.

It expects revenue to grow 20.9% for 2013 versus a previous estimate of 14% and 19.1% for 2014 versus a previous estimate of 13.6%, assuming StarHub secures 15% of the market outside Singapore’s central business district within two years.

UOB also said StarHub offered an attractive dividend yield of 6.4%.