Company Name: SINGAPORE AIRLINES LTD
|Research House: StanChart||Price Call: SELL||Target Price: 8.90|
SINGAPORE (Oct 20): Standard Chartered Bank has cut its price target for Singapore Airlines from $11 to $8.90, based on 0.8 times projected FY2015 book value. Its previous target was pegged at parity to book value.
The bank has also lowered its earnings per share estimates for SIA by 35.7% and 54.1% respectively for FY2015 and FY2016 to factor in Tiger Airways' losses.
Tiger, now 40% owned by SIA, will become a subsidiary of the full-service carrier following its recently announced rights issue, which will raise as much as $234 million.