Singtel's positive earnings guidance for FY 2025 signals confidence, CGS International analysts say in a research report, as they raise the stock's target price to S$3.75 from S$3.70 with an unchanged add rating.

Singtel raised its FY 2025 EBIT growth guidance from low double digits to "high teens to low twenties," above the brokerage's expectation of mid-to-high teens. Also, the brokerage's forecasts Singtel's FY 2026 and FY 2027 dividend per share to be 19 and 21 Singapore cents, respectively.

These expectations translate into attractive yields of 5.7% and 6.3%, they add. They're also underpinned by Singtel's improving free-cash-flow generation and ongoing execution on monetization initiatives, the analysts add. Shares are unchanged at S$3.37.