SingTel

SingTel: Deutsche says SingTel’s core biz ex-associates has dropped to forward P/E of 13.4x, in line with long-term average, and about 0.5 S.D cheap when stripping out Digital Life losses. Such levels has not been seen in the last two years. Local and regional comps are trading at 18x, and SingTel is relatively attractive. While Singapore business is encountering broadband pricing pressure and potentially more mobile competition, Optus appears well positioned to take mobile and fixed share ahead. SingTel historically performs when Optus and associates do well, and Deutsche thinks such a period has returned. The house picks SingTel as one of the regional top picks and are attracted to its high dividend yield. Deutsche has a Buy call on SingTel with TP of $4.50