Singtel, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Paul Chew from Phillip Securities maintained a Buy rating on the stock and has a S$4.86 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Paul Chew’s rating is based on Singtel’s strategic initiatives and market conditions that suggest potential growth. The company is actively working on asset monetization, with a target exceeding S$9 billion, and is scaling up its data center capacity, which is expected to double. This expansion is likely to enhance earnings, particularly as the data center business becomes more profitable. Additionally, Singtel’s adoption of AI at scale aims to improve productivity by 20-30%, positioning the company to maintain a competitive edge.
Furthermore, the mobile price repair trend in countries like India, Thailand, and Australia indicates a positive outlook for Singtel’s operations in these regions. Although Singapore’s market remains challenging, the planned consolidation of Simba and M1 could stabilize prices. The company’s efforts to optimize its business model, such as the MOCN partnership with TPG in Australia, are expected to reduce costs and increase revenue. These factors, combined with a higher target price and improved visibility on monetizing key associates, support the Buy rating.
According to TipRanks, Chew is a 5-star analyst with an average return of 21.6% and a 66.99% success rate. Chew covers the Industrials sector, focusing on stocks such as Keppel Corporation Limited, Sembcorp Industries, and ST Engineering.
In another report released on August 29, DBS also maintained a Buy rating on the stock with a S$5.04 price target.