Starhub

Starhub: Macquarie keeps OP call but lifts TP to $2.97 from $2.62 after increasing FY11/12 earnings estimates by 5%l. Expects investors to be positively surprised over next 24 months with increased contributions from corporate data business on back of Spore's new high-speed national broadband network, better dividend outlook due to lower capex; also notes pay-TV business holding up well.

Estimates new broadband network to boost its market share in corporate data space by 4% in FY11 from 15% currently. Overall profit margins should improve in absence of EPL content costs. Stock still offers attractive yield of 8% based on 20¢ DPS. Support lies at 20-day MA at $2.43.