SingTel: Citi downgrades to neutral with $3.33 TP. Note of lack of catalysts to drive value. House cut FY12-14 EPS 7-9% and downgrade Singtel from Buy to Neutral with a new TP of $3.33. These reflect changes to affiliate expectations, and latest FX assumptions and tweaks to SG margins and Optus growth.
House see limited drivers on the horizon for the stock to re-rate further. Prospects for dividend surprise in the medium term look low. Moreover, EPS momentum has softened with affiliate disappointments and higher domestic SACs. Prefer M1 $2.43 TP and China Mobile HK$79.80 among the larger cap regional telcos.
No comments:
Post a Comment