Broker: DBS Group Research
Date of Report: 26 May 2026
Date of Report: 26 May 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Singapore Telecommunications Ltd (Singtel)
- Action: Upgrade to BUY
- Target Price: SGD5.46 (revised up from SGD5.36)
- Ticker: ST SP
- Key Highlight:
- Singtel benefits from geographical diversification, with major stakes in telecom associates across India, Indonesia, Philippines, and Thailand.
- OpCo EBIT growth is expected at 5% in FY27F, accelerating to 10% in FY28F, driven by Optus, Data Centre, and NCS businesses.
- Potential catalyst: Tariff hikes in India in the second half of 2026, possibly triggered by Jio filing its IPO Draft Red Herring Prospectus.
- Holding company discount expanded to 17% (from ~7% in Mar 2026), presenting a rally setup.
- Core business valuation reduced to SGD1.35 per share (from SGD1.57) due to lower Singapore business performance and higher net debt.
- Dividend payout ratio expected at ~90% over FY27F-29F, supported by asset divestments and cost savings.
- Risks include currency fluctuations and irrational competition in Australia.
- Implications:
- Investors are advised to focus on Singtel for its upgraded BUY call and revised target price, with key catalysts and dividend support highlighted.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com.sg
