Maybank Kim Eng raised its rating on StarHub Ltd to
'buy' from 'sell,' impressed by the company's 27 percent rise in
quarterly profit and said fourth-quarter results could also beat
expectations as the negative impact of iPhones on margins could
The broker said that with third-quarter margins at 33.9
percent versus full-year outlook of 30 percent, Singapore's
second-biggest telecom firm has "a good chance of doing better
than expected." Maybank raised its target price to S$3.99 from
StarHub's shares were up 0.6 percent at S$3.67 in a weak
market and have risen 26 percent so far this year,
outpacing a 14 percent rise in the index. The stock has eased
after hitting a record high of S$3.88 in early August.
HSBC also raised its rating on StarHub to 'neutral' from
'underweight,' partly helped by the company's better operating
Maybank said StarHub's gearing fell to a record low of 0.46
times in the third quarter following its recent raising of S$220
million in medium-term notes, and this raises confidence in
Ahead of the results, 13 brokers had a 'hold' rating on
StarHub, with nine rating it a 'sell' or 'strong sell,' one had
a 'buy' rating and one had a 'strong buy' recommendation.
StarHub earns all its revenue from Singapore. Quarterly net
profit at smaller rival M1 Ltd fell 19.5 percent.
Singapore Telecommunications Ltd reports results this