0916 GMT - Singtel's Optus business in Australia may face a bumpy recovery amid potential fines and penalties owing to its nationwide outage in November, say CGS-CIMB analysts in a report. This is weighing on investor sentiment, and they remain cautious while awaiting an Australian Senate inquiry's report into the outage, which is due at end-February, adding that lower Optus contribution could weigh on overall 3Q net profit. However, CGS-CIMB expects healthy growth for Singtel's Singapore operations going into FY 2025 amid a recovering roaming segment and expected realization of ongoing cost-optimization initiatives. CGS-CIMB has a buy rating on the stock with a target price of S$2.90. Shares of Singtel are last at S$2.38. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
February 16, 2024 04:16 ET (09:16 GMT)
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