Broker: Maybank Research Pte Ltd
Date of Report: April 13, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Stock: Singapore Telecommunications (Singtel) (ST SP)
- Action: BUY
- 12-month Target Price: SGD 5.25 (Current Price: SGD 4.88, Upside: +12%)
- Key Highlights & Actionable Insights:
- Investment Thesis: Medium-term catalysts are delayed but not derailed. Bharti Airtel tariff hikes in India may be delayed by about 6 months, but rational competition, low mobile spend-to-GDP, and the potential Reliance Jio IPO support the re-rating story.
- Supportive Drivers: Optus price hikes in Australia, fast-growing data centre segment (EBITDA expected to grow at 29% CAGR FY25-28), resilient ASEAN associates, and ample capital returns (5-6% yield) backed by a strong balance sheet.
- Valuation: Singtel trades at a 24% holding company discount (historical average ~16%), with a projected 15% earnings CAGR and robust capital recycling options (notably a SGD 2.8b stake in Gulf Development).
- Risks: Delays in Indian tariff hikes and Singapore market consolidation, FX headwinds, and regulatory reviews. However, these are seen as delays rather than derailing the investment case.
- Implication: Current volatility presents an opportunity to accumulate Singtel shares, with catalysts intact and strong capital management providing downside support.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : www.maybank-keresearch.com
