In a report released today, Sachin Mittal from DBS downgraded Singtel to a Hold, with a price target of S$5.36.
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Sachin Mittal has given his Hold rating due to a combination of factors tied to valuation, earnings risks, and limited upside after a strong share price run. Singtel has benefited from its diversified footprint across Singapore, Australia, and key Asian associates, with Optus, NCS, and the data-centre business driving earnings and future growth potential, particularly from FY27F onward.
However, the stock has already rallied more than 50% over the past year, with the holding company discount compressing to a multi‑year low, leaving less room for further re‑rating. Added to this are downside risks from possible margin pressure in the Singapore mobile market, a delayed tariff upcycle at Bharti Airtel that prompted a cut in associates’ valuation, and competitive as well as currency headwinds in Australia, all of which justify a more cautious Hold stance with only modest upside to the revised target price.
According to TipRanks, Mittal is a 5-star analyst with an average return of 20.9% and a 68.15% success rate. Mittal covers the Technology sector, focusing on stocks such as Grab, International Business Machines, and Microsoft.