Singtel

Singtel: It sees more potential in its Enterprise business, its enhanced capabilities and strategy to harness the potentials in this segment – namely in Cyber Security, Enterprise Cloud and Singapore’s Smart Nation program.

In Singtel’s consumer business in SG, it has downplayed the threat from the emergence of 4th telco in SG. Both of the interested companies Consistel and MyRepublic do not have any experience in running a mobile network/business. The outcome could also depend on several factors such as IDA’s auction, a level playing field and level of investment (scale of a few hundred million). Market watchers believe that the new entrant would garner <10% of market share from incumbents; but do not rule out a near-term disruption in pricing.

As Singtel’s share price has a pretty steep correction over the last week or so, falling to as low as $3.91 on Wednesday. OCBC believes that value is emerging and they have adjusted their fair value up from $4.31 to $4.40 to reflect the higher prices of its listed associates. OCBC also upgrades their call to BUY. Deutsche Bank has maintained its BUY rating with TP: $4.60.