Singapore Telecommunications' core business value may rise, supporting DBS Group Research's bullish view of the stock despite it rallying about 45% this year.

Analyst Sachin Mittal expects Singtel's FY 2026-FY 2028 core business Ebitda to grow at a CAGR of around 5%, partly thanks to the likely doubling of its Singapore data-center capacity.

Its mobile segment's average revenue per user could stabilize in mid-2026 given sector consolidation, he adds in a note.

A potential stake buy of a data-center company at fair value could also be favorable for the Singapore telecom company in the medium term, Mittal adds. DBS raises its target price to S$5.71 from S$5.04 and retains a buy rating.

Shares fall 0.6% to S$4.63.