Monday, May 16, 2011

Singapore Airlines rated 'outperform' by CIMB

Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
Research House: CIMB

CIMB in a May 16 research report says: "During its analysts' briefing, SIA reiterated its cautionary outlook for FY2012 due to high fuel prices, and potentially lower load factors.

"SIA is planning to increase aircraft utilisation, and replace its aged aircraft with new planes, moves that will improve operating efficiency. While we reduce our FY2012 EPS by 2% on various adjustments to our forecasts, we raise FY2013-2014 by 2-3%.

"We also raise our net dividend per share assumptions from $1 to $1.50 for FY2013-2014, as we expect SIA to distribute its excess cash on a more regular basis. Consequently, our target price drops from $16.20 to $16, but net dividend yields rise to 5.5-10.2% p.a. from 5.5-7%. MAINTAIN OUTPERFORM."

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