Brokers' take

StarHub | Hold Aug 23 close: S$1.66 Target price: S$1.82 UOB Kay Hian, Aug 23

New CEO Peter Kaliaropoulos has outlined strategic priorities and key initiatives to leverage on the group's consumer and enterprise businesses. Management treats competition from TPG Telecom seriously. StarHub will vigorously defend its base of high-value mobile subscribers, despite increased competition. Mr Kaliaropoulos sees average revenue per user challenged by the proliferation of SIM-only plans.

Management sees room for consumption of data to increase as Singapore has not been hit by the video tsunami yet, citing markets where average data consumption is 80GB, compared with 5GB in Singapore. On the pay-TV front, it intends to work towards a variable cost model for content.