SIA – Singapore Airlines (SINGF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Roy Chen from UOB Kay Hian maintained a Hold rating on the stock and has a S$6.22 price target.
Roy Chen has given his Hold rating due to a combination of factors influencing Singapore Airlines’ financial outlook. The airline’s passenger load in March 2025 saw a slight decline compared to the previous year, attributed partly to the shift in the Easter holiday. Although the passenger capacity and load showed year-on-year growth for the fourth quarter of FY25, the overall passenger load factor decreased slightly.
Additionally, while cargo load increased by 2.0% year-on-year, the growth was not as robust as the increase in cargo capacity, leading to a drop in the cargo load factor. Despite these challenges, a significant drop in jet fuel prices is expected to positively impact the airline’s earnings in FY26, with a projected 17% increase. However, uncertainties in the cargo sector and the mixed operational performance contribute to the decision to maintain a Hold rating, with a target price of S$6.22.
Chen covers the Industrials sector, focusing on stocks such as ST Engineering, SATS, and Cathay Pacific Airways. According to TipRanks, Chen has an average return of 4.8% and a 54.55% success rate on recommended stocks.