“Singapore mobile ARPU is likely to stabilize in mid-2026 once sector consolidation is approved by the end of 2025,” says Mittal.
The analyst shares that Singtel’s Indian associate Bharti is experiencing explosive growth from rising ARPU while Australian subsidiary Optus and Thai associate AIS are also seeing decent growth.
Meanwhile, the Indonesian associate Telkomsel is the latest player to have started to experience a rise in ARPUs.
In his view, the potential catalysts for Singtel will be the sharp rise in data centre EBITDA in early 2026 and mobile ARPU stabilisation in Singapore in the middle of 2026.
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“Singapore data-centre capacity is set to double to 120MW with the opening up of AI-ready Jurong DC in early 2026,” adds Mittal.
Hence, Mittal is keeping his “buy” call on Singtel with a higher target price of $5.71 as he lifts Singtel’s core business valuation multiple to regional average of 7 times 12-month forward EV/EBITA, from the previous level of 5 times.
This is supported by a 5% EBITDA CAGR in FY2026 to FY2028, compared against its peers of an average of 4%. Associates are valued at $4.14 per share (prev $4.10) with an unchanged 10% HoldCo discount.
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Mittal also states that a potential STT GDC acquisition could add a new high-growth associate besides Bharti, which is positive in the medium term for Singtel.
As at 9.31am, shares in Singtel are trading 2 cents higher, or 0.44% down at $4.58.
