Broker Name: CGS International
Date of Report: February 4, 2026
Excerpt from CGS International report.
Report Summary
- CGS International reiterates an Add rating on SingTel and raises its target price to S\$5.34 after SingTel’s acquisition of a 25% stake in STT-GDC, a major data centre operator, in partnership with KKR.
- The acquisition will enhance SingTel’s exposure to the fast-growing data centre market across 12 countries, providing long-term earnings growth and opportunities for asset monetisation.
- The deal is valued at an enterprise value of S\$13.8bn, with SingTel contributing S\$740m initially and an additional S\$400m-500m for future capex, without straining dividend growth potential.
- Core net profit estimates for FY27F and FY28F are raised by 1.3% and 1.7% respectively, with a positive outlook on dividend per share growth and continued asset recycling potential.
- SingTel’s asset monetisation, especially its stake in Bharti Airtel, is seen as a key catalyst for share re-rating, and the acquisition will not impact its ability to deliver dividend growth.
- The company continues to show strong ESG commitment, aiming for net-zero emissions by 2045, and maintains robust financial health with improving ROE and stable operating metrics.
- Main risks include increased competition in key markets, potential for large or expensive acquisitions, and regulatory changes affecting earnings or cashflow.
- SingTel remains one of the top ASEAN telcos for sustainability and financial performance, with solid shareholder backing and a clear growth strategy focused on digital infrastructure and cloud services.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com
