{
  "id": 9033369,
  "title": "Macquarie trims Singtel target price to S$4.98, keeps ‘outperform’ rating",
  "url": "https://urgent.news/2026/09/21/macquarie-trims-singtel-target-price-to-s-4-98-keeps-outperform-rating",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-21T23:00:00.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/macquarie-trims-singtel-target-price-s4-98-keeps-outperform-rating"
  },
  "original_language": "en",
  "account": "Macquarie, a major brokerage firm, has adjusted its target price and earnings per share estimates for telecommunications company Singtel. The firm lowered its target price from S$5.29 to S$4.98, attributing the reduction to lower fair values for the company's regional associates and a weaker currency exchange outlook. Despite this price cut, Macquarie retained its \"outperform\" rating for Singtel, highlighting the company's strong growth prospects and potential sector consolidation as key drivers for a price increase.\n\nFoo Zhiwei, a Macquarie analyst, projected Singtel's core business to expand by 12% in the 2027 financial year, exceeding management's current low-to-mid single-digit growth guidance. This projected growth is expected to be fueled by high EBIT (earnings before interest and taxes) growth from Optus, the company's Australian subsidiary, and its enterprise unit NCS, as well as a significant boost from the Digital InfraCo segment, which is estimated to see a 70% rise in EBIT.\n\nHowever, Macquarie decreased its earnings per share estimates by 15% for FY2027 and 10% for FY2028, taking into account higher depreciation from the digital infrastructure business and revised associate earnings. The brokerage noted that Singtel's domestic market outlook remains subdued due to intense price-driven competition. Nonetheless, Macquarie believes a potential consolidation of Singapore's telco sector could present upside opportunities. A 1% increase in mobile average revenue per user (ARPU) could add S$0.02 per share to the company's fair value. Additionally, new contract wins from Singtel's GPU-as-a-service business, RE:AI, could further boost valuations, with every S$300 million contract contributing an estimated S$0.12 per share in upside.",
  "summary": "The brokerage has cut its EPS estimates for the telco group by 15% for FY2027 and 10% for FY2028",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}