SINGAPORE (June 16): UOB Kay Hian recommends investors buy StarHub at $2.62, with a target price of $2.98 in mind.

Although StarHub has made all-round efforts to build up its fixed enterprise business by enhancing capabilities in cyber security, UOB says it is keeping an eye on the telco’s increasing financial leverage.

On Friday, StarHub issued $200 million 3.95% subordinated perpetual securities. Proceeds from the issue of perpetual securities will be utilised for working capital or investments. The perpetual securities are part of StarHub’s $2 billion multi-currency debt issuance programme.

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