Starhub: What did the analysts say

Does not sound catastrophic, really. However, it's not what the analyst say or what the numbers tell, it is what the general market perceived. I will continue to HODL. (Using a term from the crypto-verse).

"Core profits in line. Maintain BUY. One-off expenses diluted what was an in line performance by StarHub for FY2018. The reduced payout policy was in line with our previous forecast for 2019E DPS. We believe the stock has more than priced in the tougher wireless environment and profit pressure. Our marginally reduced forecasts and DCF based (WACC 5.7%, LTG -1%) TP of SGD2.18 offers healthy upside. The stabilization of the competitive environment is the key catalyst. Further escalation is the primary risk."

"Maintain NEUTRAL, DCF TP (WACC: 7.6%, TG: 1.5%) raised to SGD2.02 from SGD1.90; 6% upside plus 5% yield after rolling forward our base year. FY20F EV/EBITDA of 6.1x is at 1.5SD below its historical mean, which we believe factors in the stiff mobile competition and headwinds plaguing the pay-TV and broadband businesses. Key risks are stronger-than-expected competition from TPG Telecom and execution of its transformation plans."

Downgrade to HOLD on a slower than expected recovery. We cut our DCF-based TP to S$1.92 (WACC of 7%, Terminal growth of 0%) from S$2.45 earlier as we revise down our FY19/20F earnings projections by 8%/11% on a slower than expected recovery. 


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