SINGAPORE (Oct 16): DBS is reiterating StarHub at “fully valued” with a target price of S$2.20, on falling subscribers and expensive valuation, despite a decent dividend yield.
In a Monday report, analyst Sachin Mittal says: “The number of households subscribing to all three services — pay TV, fixed broadband and mobile — has been declining, which has been a critical factor in dictating the stock’s performance.”
On valuation, Starhub is expensive at a forward price-to-earnings (P/E) of 17.5 times, compared with a sector average of 15 times, as well as 9 times EV/EBITDA versus a sector average of...(click on link for full story on theedgesingapore.com)