In a report released on February 20, Paul Chew from Phillip Securities maintained a Buy rating on Singtel (SNGNF – Research Report), with a price target of S$3.77.
Paul Chew gave his rating based on several factors, including a notable performance in key markets like India and Australia. Earnings from Bharti showed a significant increase, contributing to the positive outlook. The recovery in Optus, marked by a substantial rise in EBIT, also played a critical role in this favorable assessment.
Moreover, the analyst’s confidence was bolstered by the expectation of increased dividends from Bharti Airtel, which is anticipated to enhance cash flow. Despite challenges in Singapore and Indonesia due to competitive pricing pressures, the overall growth potential in strategic areas like Optus and NCS, along with the monetization of stakes in Bharti and Intouch, supports the Buy recommendation. The increase in the target price further reflects these optimistic growth prospects.
In another report released on February 19, DBS also maintained a Buy rating on the stock with a S$3.82 price target.