StarHub Analyst Report

SINGAPORE (XFN-ASIA) - Citigroup said it has raised its target price
for
StarHub Ltd to 2.30 sgd from 2.25 due to the company's
better-than-expected three months to September financial results and
quarterly dividends.

Yesterday, StarHub, Singapore's second largest phone firm, said
it
posted net profit of 65.1 mln sgd in the third quarter, reversing a
loss
of 1.4 mln the year before, due to broad-based gains in its phone,
broadband and cable TV segments.

"Its capital management potential stays a powerful 2006 theme.
Assuming target leverage of 1.5-2.0 times net debt/EBITDA, we see
0.33-0.46 sgd per share available for return to shareholders,"
Citigroup
said in a note.

It has maintained a "buy" recommendation on StarHub.

"StarHub stays our preferred telco pick in Singapore and is also
a
top regional telco pick," Citigroup said.

At 2.01 pm, StarHub was up 0.01 sgd, or 0.52 pct at 1.92 with
1.95
mln shares traded.