Broker's take: Nomura maintains 'buy' on SingTel

NOMURA said on Thursday that SingTel will remain a "steady stock", given its current business and geographical mix as well as management's approach to investments and dividends.

Maintaining its "buy" call on SingTel, the report noted the telco's "unexciting" financial performance with no consolidated revenue growth in the past five years.

Even so, total return on SingTel shares since 2010 stands at 53 per cent with a 4-8 per cent dividend yield per annum. "SingTel has outperformed the market in three of the past five years. It lagged its Singaporean peers, but was not bad versus regional large-cap incumbents," the Nomura report said.

According to the report, Australian performance will be key for SingTel. There is "scope to improve" in wireless and regain its traction in the fixed segment through the National Broadband Network. Singapore is expected to be "steady", while SingTel's associates will remain "volatile".