In a report released today, Paul Chew from Phillip Securities maintained a Hold rating on StarHub, with a price target of S$1.05.
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Paul Chew’s rating is based on a combination of factors affecting StarHub’s performance. The company’s financial results have been below expectations, with revenue and EBITDA falling short of forecasts. This shortfall was partly offset by a one-time income grant, but overall profitability has been impacted by increased competition in the mobile and broadband sectors.
Despite healthy cash flows, StarHub faces challenges from declining mobile revenue and intense competition, particularly in low-end mobile plans and broadband services. The company is expected to continue aggressive market share expansion efforts, but this may not immediately translate into improved financial performance. As a result, the Hold rating reflects a cautious outlook, with a lowered target price, while acknowledging potential opportunities such as a special dividend from asset sales.
According to TipRanks, Chew is a 5-star analyst with an average return of 22.2% and a 70.04% success rate. Chew covers the Industrials sector, focusing on stocks such as ST Engineering, Keppel Corporation Limited, and Comfortdelgro.
In another report released today, DBS also maintained a Hold rating on the stock with a S$1.19 price target.