Singapore Stock Market News

Singapore Airlines - Bombay dreams

StockFanatic
Publish date: Sat, 21 Sep 2013, 12:21 PM
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SIA and Tata Sons have entered into a joint venture to establish a new full-service carrier in India. While details are yet to be released, we believe that this partnership is designed to combat the Middle Eastern carriers on their own turfs.

For now, we believe that the company is undergoing a long-term de-rating due to competition from the Middle East airlines and low-cost carriers (LCCs). We thus base our CY14 target price of S$10.50 on a trough multiple of 4.2x CY14 EV/EBITDAR. Our target price and estimates are intact, so is our Neutral rating.
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