Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED
Research House: Credit Suisse
Company Name: SINGAPORE EXCHANGE LIMITED
Research House: Credit Suisse
Credit Suisse raises Singapore Exchange (S68.SG) target price $11.20 from $9.40, keeps Outperform; says stage set for “2005-style market rally in 2011”, says Dow Jones.
Notes study of performance of bull markets since 1994 in Singapore suggests 20%-40% turnover growth in 24 months following base set during initial 12 months of rally; now factors in 20% organic turnover growth in next 12-24 months.
Notes study of performance of bull markets since 1994 in Singapore suggests 20%-40% turnover growth in 24 months following base set during initial 12 months of rally; now factors in 20% organic turnover growth in next 12-24 months.
Notes recent run-up in stock price in reaction to increase in turnover, stock not yet pricing in gains from new catalysts on horizon, including listing of U.S. ADRs in Singapore, OTC clearing of financial derivatives. “With many investors still sceptical, by our estimates, the stock is not yet pricing in potential gains from ADR trading - the most promising near-term catalyst.”
House increases equity turnover assumptions for FY12-13E by factoring in 20%-30% market share in ADR trading, results in 18%-19% increase in FY12-13 EPS estimates to 50 cents, 53 cents respectively.
Shares end yesterday +1.9% at $9.47.
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