StarHub Ltd - Hold by Philips (11 May 09)

Maintain HOLD recommendation and target price at S$2.14. As StarHub’s results were within expectations, we maintained our target price of S$2.14 under the discounted cash flow (DCF) model. Although StarHub offers its services only in Singapore, it continues to be an attractive stock as it offers dividend yield 9.2%. We kept our Hold recommendation because of limited upside in the share price to our target price of S$2.14.