Singapore Stock Market News

Starhub - A glimmer of starlight

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Publish date: Wed, 15 Aug 2018, 11:33 AM
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Upgrade to Add with a revised target price of S$1.85. Multi-year share price decline now fairly accounts for competition risk, with potential upside surprise from cost cuts.

We cut FY19F-20F DPS to a more sustainable S$0.10 p.a. Still decent 6.1% yield.

■ StarHub will pursue cost optimisation in 2H18F. Our scenario analysis shows a sizeable fair value boost if cost cuts are better-than-expected.

■ Enterprise Fixed business may surprise on the upside on bigger-than-expected government contract wins and/or earnings-accretive acquisitions.

Key developments to watch:
a) TPG's service launch by year-end,

b) TPG's market traction by mid-2019 and

c) more details on cost cuts during 3Q/4Q18 results call. Read More
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