Singtel, Singapore’s leading telecom provider, is projected to reach a stock price of S$5.04 within a year, according to a recent report by DBS. This forecast represents a 23% increase from its last traded price of S$4.11 on 21 August 2025. The anticipated growth is attributed to a renewed correlation between Singtel’s stock price and the market value of its associates, alongside sector consolidation in Singapore’s telecom industry.
The report highlights that Singtel’s core business, which contributes approximately 50% to its core earnings before interest and taxes (EBIT), is expected to benefit from sector consolidation in the next nine to 15 months. This consolidation is anticipated to renew growth in Singtel’s Singapore telco operations, which currently account for about 10% of the group’s profit.
DBS analyst Sachin Mittal notes that the correlation between Singtel’s share price and its associates’ market value has revived to 63% over the past year, suggesting a potential reduction in the holding company discount from 24% to below 10%. This revival is partly due to improved core EBIT and strategic divestments.
Singtel’s geographical diversification, with significant stakes in telecom associates across India, Indonesia, the Philippines, and Thailand, contributed over 64% of its group operating profit in FY25. The company is also expected to accelerate core EBIT growth through investments in data centres and GPU as a Service.
However, potential risks include a decline in the Australian dollar or increased competition in Australia, which could impact Optus, Singtel’s Australian subsidiary. Despite these challenges, Singtel’s earnings are projected to grow at a compound annual growth rate of 12% over FY25-27, supported by a 4.7% yield and buyback initiatives.
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