Singtel Share Price Outlook 2026-2027: Can the Rally Continue? DBS Research Analysis, Latest Update

DBS Group Research maintained a HOLD rating on Singapore Telecommunications Ltd (Singtel), with a target price of SGD 5.36, following the company’s latest results released in the report dated 21 May 2026. The brokerage said Singtel’s 4Q26 underlying net profit came in at SGD 672 million, up 12% year on year but down 10% quarter on quarter, and was 6% below consensus estimates. Operating company (OpCo) EBIT reached SGD 312 million, rising 4% year on year but declining 14% quarter on quarter, also missing expectations because of weaker-than-expected contributions from Singapore and Australia.

DBS noted that Singtel declared a final dividend of 10.3 Singapore cents per share, an increase of 3% year on year. This brought the full-year FY26 dividend to 18.5 cents per share, up 9%, which was broadly in line with market expectations. The dividend performance provided some support to the investment case, but the broker said the earnings outlook remained mixed.

For FY27F, Singtel guided for low- to mid-single-digit growth in OpCo EBIT, which DBS said is below the market consensus expectation of more than 12% growth. The brokerage viewed this guidance as a sign that near-term operating momentum is likely to stay modest. It pointed to ongoing pressure in Singtel’s Singapore consumer business, where earnings remain constrained by weak mobile average revenue per user (ARPU) and intense competition.

DBS also highlighted that Optus in Australia is expected to recover, which could help support future performance. However, the broker said competitive conditions in Singapore are still severe, limiting the pace of improvement. As a result, Singtel’s earnings growth may remain subdued in the near term despite signs of stabilization in some parts of the business.

Overall, DBS maintained its HOLD call, arguing that Singtel’s valuation is supported by dividends and its regional business footprint, but that the company lacks a strong near-term catalyst for a re-rating. The firm said investors should watch for any sector consolidation and a stronger recovery in Singtel’s Singapore operations, which could improve the earnings outlook over time. For now, however, DBS sees growth as muted and guidance as softer than expected, reinforcing a cautious stance on the stock.