Singtel's new FY 2025 earnings guidance looks encouraging, the OCBC Investment Research team says in note.

The telecom conglomerate has raised its FY 2025 EBIT growth forecast to high teens-to-low twenties from prior forecast of low double digits, the team says.

Singtel is likely a key beneficiary of Singapore's drive for technology and innovation as highlighted in recent Singapore Budget, the team says.

The government will allocate S$150 million for a new "Enterprise Compute Initiative," which Singtel could tap to expand its enterprise services and cloud-computing offerings.

OCBC raises stock's fair value estimate to S$4.00 from S$3.85 and maintains a buy rating. Shares are 2.1% lower at S$3.30.