StarHub's shares surged 3.92% during intraday trading on Monday, as investors reacted to a bullish analyst report highlighting the potential for a transformative acquisition in Singapore's telecommunications sector.
DBS Group Research analyst Sachin Mittal upgraded StarHub to "buy" from "fully valued" and raised the target price to S$1.40 from S$0.94, citing the possibility of StarHub acquiring rival M1. The analyst noted that a deal could be announced in 2026 following the collapse of the M1-Simba deal. Mittal estimates annual synergies between StarHub and M1 to be about 9%-11% of the combined FY 2026 Ebitda, and any consolidation of the Singapore telecommunications sector could also boost StarHub's average revenue per user.
The upgrade and optimistic outlook on sector consolidation drove the stock higher during the session, reflecting market confidence in StarHub's potential growth trajectory.