Starhub

Starhub: Macquarie upgrades to o/p from Neutral, TP $4.50. While risks on StarHub’s pay TV business could be alleviated by the MDA’s decision (pending appeal by SingTel) to mandate the cross carriage of Barclay’s Premier League, the increased pressure in the broadband space form SingTel could yet keep risks elevated for a while. In the meantime, at 9.9x adj FY13E EV/EBITDA and offering a 4.9% dividend yield, believe StarHub’s shares are poised for a rebound as equity markets settle down. Within the Singapore telecoms space, top pick remains SingTel (TP $4.22, OP) followed by M1 (TP $3.72, OP) for a pure Singapore market exposure.