Starhub target lifted to $2.85 by BNP, keeps Buy

Written by The Edge


Friday, 27 August 2010 12:05

BNP Paribas lifts Starhub (CC3.SG) target price to $2.85 from $2.65, based on discounted cash-flow valuation, after accounting for lower pay-TV churn rate assumption, rolling over valuation base to 2011 vs 2010, says Dow Jones.

BNP says despite losing EPL football broadcast rights to SingTel (Z74.SG), Starhub’s pay-TV churn rate only slightly higher than before EPL loss. “StarHub’s non-sports content remains superior to SingTel’s.” Lowers 2010 pay-TV churn rate estimate to 10% vs 15%. Keeps Buy call.

Notes, “StarHub’s prospective (dividend) yield of 8.5% is attractive, especially in current volatile market environment.”

DBS tips Singapore telco competition to stay tame

Written by The Edge


Wednesday, 18 August 2010 15:57

Contrary to popular opinion, competition in Singapore’s telecom sector may not heat up in 2H10, says DBS Vickers, according to Dow Jones.

DBS Vickers doesn’t expect SingTel (Z74.SG) to pursue market share in Singapore mobile segment to offset potential weakness in its associates.

“SingTel is likely to focus on FY11 Singapore earnings by not over-engaging in handset subsidies,” says the broker.