Brokers' take

Telco | Neutral

CIMB Research, Nov 17

ALTHOUGH M1 and StarHub's share prices have fallen in the past 24 months, we believe that their current valuations are just about fair. We also see a big overhang on their share prices at least until the fourth player's service launch in early-2018, when the market could get better visibility on its impact. Maintain "hold" on StarHub and M1, as we believe their 5-7 per cent yields are merely sufficient to compensate investors for future earnings risk. SingTel is our only "add" and preferred Singapore telco pick.