Analyst Raymond Yap of CGS-CIMB reiterated a Hold rating on SIA – Singapore Airlines (SINGF – Research Report), boosting the price target to S$6.88.
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Raymond Yap has given his Hold rating due to a combination of factors influencing Singapore Airlines’ financial performance. The company’s FY25 core net profit exceeded expectations by 12% due to favorable tax conditions, although pretax profit was slightly below forecasts because of increased depreciation. Despite these mixed results, Yap maintains a Hold rating, reflecting a cautious stance on the stock’s future performance.
Additionally, Yap raised the target price to S$6.88, driven by an increased target P/BV multiple. This adjustment is based on anticipated support for the share price until the ex-dividend date and the positive impact of lower oil prices and a weaker US dollar on upcoming earnings. However, concerns about moderating passenger and cargo yields, along with global business uncertainties, temper expectations for significant growth, justifying the Hold recommendation.
In another report released today, UOB Kay Hian also maintained a Hold rating on the stock with a S$6.63 price target.