Singapore Telecommunications Ltd's failure to win a licence in Myanmar could turn out to be a boon as it will not have to commit huge investment in an opaque regulatory environment, said Maybank Kim Eng.
"We believe this is a better outcome for SingTel as it will not have to spend billions for a long-dated result, but now have the opportunity to work with the winners to help them build out the necessary infrastructure, thus ensuring positive returns almost immediately," Maybank said in a research note.
Myanmar awarded two telecommunications services licences to Norway's Telenor and Qatar's Ooredoo, and picked the partnership of France's Orange and Japan's Marubeni Corp as a back-up.
SingTel, the worst performer among Straits Times Index components on Friday, dropped as much as 1.6 percent to S$3.66, before paring some losses to S$3.70.
Maybank upgraded SingTel to "hold" from "sell" with the target price pegged at S$3.50.
Yoma Strategic Holdings, which was a part of Digicel-led consortium to bid for one of the two Myanmar licences, lost as much as 6.8 percent to a two-week low of S$0.895.