Singtel

Singtel: CS highlighs upcoming spectrum auctions in India have attracted high interest, Importantly RIL-Jio’s surprise entry into the auction has changed the sector’s competitive dynamics against market expectations. RIL’s “voice+data” strategy could allow it to target top-end of incumbents’ customer base, which could add pressure to their revenue and capex. CS revise down Bharti's FY3/15-16E EPS by 22-30% to reflect market share loss, lower RPM and higher capex. CS remains bullish o contributions of other key associates. As the house sees only 10.8% potential upside, SingTel is downgraded to Neutral from Outperform, with TP of $3.90 (from $4.10).