Thursday, October 14, 2010

SIA - Deutsche Bank ups SIA target to $19.90; keeps Buy

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: Deutsche Bank


Deutsche Bank lifts Singapore Airlines (C6L.SG) target price to $19.90 from $17.90 after increasing fiscal FY11-12 earnings forecasts by 16%-5% to reflect positive operating environment; “we are now in a strong season for business travel and forward bookings appear encouraging.” 



Says limited passenger capacity growth so far means carrier can focus on increasing yields. Adds, net cash of $3.67 billion suggests SIA can afford dividend yield of 4.0% in current FY, 5.3% next year, highest in region.



Tips fiscal 2Q11 results, due Nov. 9, as catalyst. Expects $380 million net profit vs $159 million loss year earlier. Keeps Buy call. 

Shares +0.5% at $16.46.

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