Singapore Stock Market News

Singapore Airlines - Some summer relief

StockFanatic
Publish date: Tue, 17 Sep 2013, 10:51 AM
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SIA's mainline load factors were helped by strong leisure travel and a shift in the Hari Raya period. On the other hand, SilkAir's constant capacity addition is forcing loads lower, while cargo traffic also continues to see little improvement.

We leave our target price and estimates unchanged and maintain our Neutral rating. We base our CY14 target price of S$10.50 on a trough multiple of 4.2x CY14 EV/EBITDAR to reflect the long-term de-rating that we believe SIA is undergoing due to competition from Middle East airlines and LCCs (low-cost carriers).
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