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

Analyst Paul Chew of Phillip Securities maintained a Buy rating on Singtel (SNGNF – Research Report), with a price target of S$4.40.

Paul Chew’s rating is based on several positive developments within Singtel’s operations and financial strategies. The company reported a 12% year-over-year increase in underlying net profit, driven by significant growth in Optus EBIT and associate Bharti earnings. This strong performance has led to a raised asset recycling target from S$6bn to S$9bn, with proceeds being used for dividends and a S$2bn share buyback plan over three years.
Additionally, Singtel’s operational improvements, such as mobile price adjustments and cost realignments, have contributed to a more favorable outlook. The company has also intensified its monetization efforts, leading to a reduced discount on associates and a higher EV/EBITDA valuation for its subsidiaries. These factors, combined with a robust performance in Optus mobile services and Bharti’s impressive profit growth, underpin Paul Chew’s Buy rating for Singtel.

In another report released on May 23, Citi also maintained a Buy rating on the stock with a S$4.30 price target.