SingTel

SingTel: Macquarie raises FY13-15 earnings estimates by 1.6%-4.7%, largely on upgrades to associate Telkomsel as the Indonesian telecom sector's competition becomes increasingly rational, with operators concentrating on product/service differentiation, rather than pure price to attract subscribers. Adds, Telkomsel's execution has also improved, leading the house to raise the Indonesian telco's FY12-15 earnings estimates by 13%-25%. Separately, the house is also increasingly positive on India's telecom-market outlook. Recent discussions with Axiata and Telenor senior mgt have added comfort on the competition outlook and allayed fears of future policy changes unwinding the 2G spectrum bid outcome. Notes Bharti remains the biggest contributor to the valuation gap between the SingTel stock price and its TP. Macq raises TP to $3.60 from $3.53 on the earnings estimate increases, keeping an Outperform call. Says, at 6.3X FY13E adjusted EV/ebitda and offering a 5% dividend yield, SingTel remains its top telco pick in Singapore. The stock is up 0.6% at $3.37