CIMB ups SGX to outperform, target $10.13

Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED
Research House: CIMB

CIMB Research has upgraded Singapore Exchange (SGXL.SI) to outperform from trading sell and raised its target price to $10.13 from $8.00.

CIMB has upgraded SGX after the Australian treasurer said he was disposed to rejecting the proposed ASX-SGX merger.

Previous concerns that the merger deal would create an arbitrage trading opportunity resulting in investors selling SGX shares have now subsided, CIMB said.

However, the brokerage has also cut its 2011-2013 earnings per share estimates by 3 to 4%, as it expects SGX to see lower average daily value traded for securities.

At 11:45 a.m., shares of SGX were 0.72% higher at $8.39, but have fallen 1.8% since the start of the year.