Brokers' take

Singtel | Hold (Downgrade) Target price: S$4.29 July 12 close: S$4.31 OCBC Investment Research, July 12

Following the increased volatility in the global markets after the Brexit vote, interest rates have tumbled; 3-month Sibor eased to 0.9375 per cent recently, versus a peak of 1.25 per cent this year.

And with the risk-free rate also down sharply (currently around 1.65 per cent), our discounted cash flow valuation of Singtel's core business improves to S$3.00, which along with the updated market values of its listed associates, bumps up our sum of the parts fair value from S$4.10 to S$4.29.