Telcos: CS previews 2Q16. They expect lower handset subsidies to continue providing tailwinds for M1 and Starhub’s EBITDA, and are expecting 1.8% and 3.1% y/y growth for the quarter for M1 and StarHub respectively.
-For SingTel, consolidated EBITDA is expected to rise 1.3% y/y, impacted by depreciation of AUD.
-Singapore telco stocks have rose 6-9% post the UK referendum. For now the house sees most favourable risk-reward for SingTel compared to M1 and StarHub. Clarity on the potential entry of fourth telco should emerge by 3Q16
-CS’ ratings for telcos: StarHub (U/PF, TP $3.00), SingTel (O/PF, TP $4.45), and M1 (U/PF, TP $2.05)