Starhub

Starhub: Nomura maintains Reduce with TP $3.15. Expects Starhub to maintain its solid execution track record, but believes there are many external risks that haven’t been reflected in the stock’s expensive FY13 P/E of 20x, notwithstanding its 5.6% dividend yield. (1) BPL (Barclay Premier League) content negotiations will commence in the next 1-2 mths, which SingTel will likely win again. (2) impending iPhone 5 launch, which creates some uncertainty around margins. (3) continued low fibre take up (~150k), with rising risks on broadband pricing pressures.