Singapore Telecommunications Limited, or Singtel (SG:Z74), is the largest telecommunications group in Asia and provides a range of services like fixed, mobile, internet, etc.
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Over the last few years, the company’s stock has not been able to impress its shareholders with a return of just 2.6%. In the last two years, the company faced issues like lower roaming revenues and falling demand for mobile services.
Moving on to the technical analysis of the stock, the overall summary indicates a Buy in the timeframe of one week. It is based on a Strong Buy signal from the moving averages against the Sell signal from oscillators.
The summary has a total of 14 bullish, five neutral, and three bearish signals.
On TipRanks, Singtel’s 10-day exponential moving average is 2.48 as compared to its current price of S$2.53, indicating a Buy. Similarly, the exponential moving averages for longer time periods like 100-day and 200-day also point towards a Buy.
The stock’s RSI (relative strength index) of 53.5 suggests neutral action for a 1-week period.
Is StarHub Better than Singtel?
Singtel’s competitor, StarHub Limited (SG:CC3), is also among the leading telecom providers in the Singapore market. The stock is a Sell based on the summary of the technical analysis.
For the period of 1 week, StarHub stock gets a Strong Sell signal based on the moving averages. However, based on oscillators, the stock is a Buy. The different time periods of the exponential moving averages also suggest a Sell signal for the stock.
CC3 stock has a Hold rating from analysts on TipRanks. The average price target of S$1.15 is 11.3% higher than the current price.
Is Singtel a Good Buy?
After a dull performance in the share price, analysts are bullish about the stock’s future. Within the period of the last two months, many analysts have reiterated their Buy ratings on the stock, predicting a good upside in the price.
They feel the rebound in global travel will drive roaming revenues of the company in Singapore and Australia. Analysts are also bullish about the dividend prospects of the stock and believe higher payments could be on the cards with an improvement in business operations.
Overall, Z74 stock has a Strong Buy consensus rating on TipRanks based on nine Buys and one Hold recommendation. At an average price target of S$3.04, analysts predict a 20% upside on the current level.
