Lee Len Chong, an analyst from UOB Kay Hian, maintained the Buy rating on Singtel. The associated price target remains the same with S$4.58.
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Lee Len Chong has given his Buy rating due to a combination of factors that highlight Singtel’s strong financial performance and strategic growth initiatives. The company’s underlying net profit saw a significant increase of 14% year-over-year, primarily driven by improvements in earnings before interest and taxes (EBIT) from its subsidiaries Optus and NCS, as well as higher contributions from its associates Airtel and AIS. These improvements underscore Singtel’s effective management and operational efficiency.
Furthermore, the company’s strategic growth plan, Singtel28, is on track to achieve its objectives, including a double-digit return on invested capital (ROIC). The expected completion of data centers in Thailand and Singapore under its Digital Infraco segment is anticipated to further bolster earnings. These positive developments, coupled with ongoing cost-saving initiatives, support the Buy recommendation with a sum-of-the-parts (SOTP) based target price of S$4.58.
In another report released yesterday, Phillip Securities also maintained a Buy rating on the stock with a S$4.40 price target.
SNGNF’s price has also changed moderately for the past six months – from $2.560 to $3.085, which is a 20.51% increase.