Singtel’s Strong Financial Performance and Strategic Initiatives Justify Buy Rating

In a report released today, Lee Len Chong from UOB Kay Hian maintained a Buy rating on Singtel (SNGNF – Research Report), with a price target of S$4.58.

Lee Len Chong has given his Buy rating due to a combination of factors that highlight Singtel’s strong financial performance and strategic initiatives. The company has reported stable revenue growth and significant improvements in EBITDA and net profit, driven by enhanced profitability from its core mobile businesses and regional associates. Additionally, Singtel’s cost-out program has contributed to better EBITDA margins, further supporting its financial health.
Furthermore, Singtel’s strategic moves, such as the increase in its capital recycling pot and the announcement of a share buyback program, are expected to enhance shareholder value. The company has also declared higher dividends, which indicates a strong commitment to returning value to shareholders. These factors, combined with the expectation of double-digit ROIC in the coming years, underpin Lee Len Chong’s Buy rating for Singtel.

In another report released today, DBS also maintained a Buy rating on the stock with a S$4.40 price target.