SingTel: UBS maintains Buy with $3.53 TP, says tides are turning. Expects better performance from associates this year after a tough FYMar11, while Spore business to remain solid as NBN proves not to be an imminent threat.; nevertheless foresees some risks in Australia as incumbent Telstra continues to be aggressive in pricing, posing challenges for SingTel’s Optus…
Likes FY12 dividend yield of 5.8%, attractive vs Spore govt bond yield of 2.4%.
Believes SingTel can trade at higher multiples again (5yr P/E avg of 14x) as growth resumes in FY12. Stock now trades 11.6x FY12E PE.
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