Sachin Mittal, an analyst from DBS, maintained the Buy rating on Singtel (SNGNF – Research Report). The associated price target is S$3.93.
Sachin Mittal has given his Buy rating due to a combination of factors including an anticipated increase in Singtel’s earnings for FY25F and FY26F by 3% each, based on upgraded guidance. The narrowing of the Holding Company discount from 34% to a projected 10-15% is also a significant factor, as it is closely tied to the company’s share price performance. This discount reduction is attributed to improvements in core EBIT and increased involvement in high-value sectors like data centers.
Singtel’s strategic geographical diversification further supports the Buy rating. As the leading telecom operator in Singapore and the second-largest in Australia, Singtel benefits from substantial stakes in telecom associates across India, Indonesia, the Philippines, and Thailand, which contribute significantly to its operating profit. Additionally, potential catalysts such as increased core business investment and possible market consolidation in Singapore are expected to drive future growth, justifying the higher target price of SGD3.93.
In another report released on February 20, Phillip Securities also maintained a Buy rating on the stock with a S$3.77 price target.