Singtel Shares Stand to Benefit if Optus Stake Sale Materializes -- Market Talk

Dow Jones03-14

0321 GMT - Singapore Telecommunications' shares could witness a rerating if the telecom company sells its Australian unit Optus, Citi analysts say in a research note. Although Singtel has denied an imminent plan to sell Optus for A$16 billion, it could be keeping the door open to a partial stake sale and a potentially different value from the one quoted, they say. "A stake sale would allow the market a better read-through and appreciation on Optus' underlying valuations." A divestment could result in noncash impairments, but Citi reckons it will still be viewed favorably given monetization opportunities and potentially a more efficient use of trapped capital. Citi maintains a buy rating on the stock with a target price of S$2.88. Shares are flat at S$2.48. (amanda.lee@wsj.com)

(END) Dow Jones Newswires

March 13, 2024 23:21 ET (03:21 GMT)

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Although Singtel has denied an imminent plan to sell Optus for A$16 billion, it could be keeping the door open to a partial stake sale and a potentially different value from the one quoted, they say. \"A stake sale would allow the market a better read-through and appreciation on Optus' underlying valuations.\" A divestment could result in noncash impairments, but Citi reckons it will still be viewed favorably given monetization opportunities and potentially a more efficient use of trapped capital. Citi maintains a buy rating on the stock with a target price of S$2.88. Shares are flat at S$2.48. 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Although Singtel has denied an ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"Z74.SI","symbol_name":"新电信","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2419191006","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2419191006","pubTimestamp":1710386460,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0321 GMT - Singapore Telecommunications' shares could witness a rerating if the telecom company sells its Australian unit Optus, Citi analysts say in a research note. 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