Singtel

Singtel: Barclays stays Overweight with TP $4.00. Notes Singtel is challenged by a stronger SGD, with the recent S$ appreciation relative to various regional currencies (A$, INR, IDR, etc) leading the house marginally revise down FY14-16E earnings by 3-8% due to currency effects. However, it believes SingTel's fundamentals are solid, given its ‘growth and yield’ thesis remains unchanged. Forecasts 3-year (FY13-16E) earnings CAGR at 10%; and a 70% payout delivers a yield of 4.6% for FY14E, rising to 5.5% in two years as earnings grow. Potential asset monetization points to the possibility of a special dividend in FY14E – a positive catalyst, if delivered.