RESEARCH ALERT-OCBC raises StarHub target price

SINGAPORE Feb 3 (Reuters) - OCBC Investment Research has raised its target price for Singapore telecommunications firm StarHub Ltd to S$3.10 from S$3.00 and maintained its buy rating.

By 0255 GMT, StarHub shares were up 1 percent at S$2.86.

STATEMENT:

StarHub on Thursday posted a 15 percent rise in fourth quarter net profit, which was above OCBC's estimates, the brokerage said.

StarHub also said it expects operating revenue to grow in the low-single-digit range this year.

The brokerage said it increased its 2012 earnings estimates for StarHub by 4 percent to reflect an improvement in the firm's margins.

"While StarHub was the best performing telco stock in 2011, we continue to like its defensive earnings and attractive dividend yield," OCBC said. (Reporting By Mark Tay; Editing by Kevin Lim)