SINGAPORE (June 24): Maybank Kim Eng is keeping its “positive” outlook on Singapore’s telecommunications sector, even as local media reported earlier this week that fourth telco contender MyRepublic is struggling to raise funds.

MyRepublic, one of the frontrunners in the race to be Singapore’s fourth mobile network operator, is coming up empty in its bid to raise $250 million to build a nationwide network despite its appointment of two major investment banks – Goldman Sachs and DBS.

(See also: Singapore telcos ‘positive’ even as new players wait in the wings: Maybank)

“So far, nothing has been heard about Consistel, the other potential bidder,” says Maybank analyst Gregory Yap in a report on Wednesday.

Regardless, Maybank is keeping its recommendations on Singapore telco incumbents SingTel, StarHub, and M1.

Maybank maintains its “buy” calls on SingTel and StarHub, with a target price of $4.50 and $4.15, respectively. M1 is kept at “hold” with a target price of $3.09.

“Given the relative underperformances of M1 and StarHub vs SingTel in the past 12 months, M1 and StarHub will probably see higher short-term trading churn,” Yap adds.

As at 11.28am, SingTel is down 1.30% at $3.82, StarHub is down 1.65% at $3.57, and M1 is down 2.71% at $2.51.