Should you trade Singtel shares now?

• Singapore Telecommunications Ltd (SGX: Z74) share price closed at S$2.61 on Thursday (14 July 2022)
• The telco’s market capitalisation has increased 12% so far this year
• Analysts foresee a 22% upside potential on the stock in the next 12 months
• Keen to trade Singtel shares? Open an account with us to start today

Singtel stock price: what’s the latest?

Singapore Telecommunications (Singtel) shares have declined by around 2% since the start of the week.

The blue-chip counter is up approximately 12% year-to-date.

In terms of outlook, Singtel shares have a consensus rating of ‘outperform’ and an average price target of S$3.18 (equating to a 22% upside from its last traded price of S$2.61), based on the latest SGX StockFacts data.

The latest investment thesis came from DBS’ equity research team, who reiterated a ‘buy’ call and raised price target to S$3.20 from S$3.13 on 3 June 2022.

They wrote that Singtel could potentially offer a 4% dividend yield based on a 75% payout ratio.

Meanwhile, CIMB’s equity research team reiterated an ‘add’ call and price target of S$3.20 on the stock, stating that the group’s redevelopment of Comcentre should net Singtel proceeds of between S$1.2 billion and S$1.3 billion in 2024.

Singtel subsidiaries: what’s the update?

Two weeks ago, Singtel said that it had no plans to list its Australian subsidiary, Optus, and that news reports that it was working on an initial public offering have been ‘highly speculative’.

Elsewhere, Singtel’s Indian subsidiary, Bharti Airtel, has approved the allotment of 27,543 fully paid-up equity shares of face value 5 rupees each at a conversion price of 523 rupees per equity share (adjusted in accordance with the terms of the offering circular) to such holder of foreign currency convertible bonds (FCCBs).

This is in reference to the US$1 billion 1.50% convertible bonds due 2025 issued by the company vide offering circular dated 14 January 2020.

Consequently, paid-up equity share capital of the company has increased to 27.95 billion rupees, while outstanding principal value of FCCBs, as listed on the Singapore Exchange Limited, reduced from US$1 billion to US$999.8 million.

Thinking of trading Singtel shares?

Go long or short via CFDs on Singtel and other Singapore shares with our award-winning platform.* Open an account with us to start trading shares immediately.

_{*Awarded the Best Online Trading Platform by Influential Brands in 2021.}