Keppel T&T (KPTT): KPTT’s share price hit a 22-week low of $1.455 where the recent selldown has been fuelled by the fall in the market value of its 19% stake in M1, following concerns that a potential 4th telco entrant in SG will dilute M1’s market share.
However, the selldown might be overdone as it is trading at a 7% discount to the market value of its combined stakes in M1 and Keppel DC REIT – implying that the market is ascribing no value to its core logistics and data centre businesses.
CIMB maintains its ADD rating but lower their SOP-based TP to $1.86 (prev. $2.05) to reflect the lower market value of KPTT’s stakes in M1 and Keppel DC REIT. At 10.6 FY16 P/E, the house believes the current share price offers value and presents a good entry point.
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