SingTel

SingTel: Morgan Stanley rates SingTel Overweight, given improving trends in Singapore and Optus, supported by M1's recent 4Q results, which show continued ARPU increase in Singapore, whereas Optus' mobile revenue decline stopped in 2QFY15 and should recover from 3Q. While the market has been concerned about recent currency movements, especially weakness in AUD, house reckons only a modest 1% negative impact on 3QFY15 PBT. This is because S$ also depreciated 3.5% vs the US$, which reduces the translation risk for SingTel. Moreover, the INR and THB actually appreciated vs the S$, partially mitigating the impact of AUD weakness. Counter pays dividend yield of 4.8% and EPS CAGR of 9% make the stock attractive.