Stock Name: SIA
Company Name: SINGAPORE AIRLINES LTD
SIA said its first quarter net profit fell by a worse-than-expected 82% to $45 million from a year ago, hit by soaring jet fuel prices.
Company Name: SINGAPORE AIRLINES LTD
| Research House: UBS | Price Call: HOLD | Target Price: 13.00 |
UBS has downgraded Singapore Airlines (SIA) (SIAL.SI) to neutral from buy and cut its target price to $13.00 from $16.00.
UBS has cut its earnings per share forecast for SIA in fiscal 2012 to $0.60 from $0.84 and to $0.87 from $1.03 for 2013 after the airline reported poor first quarter earnings, partly due to slower demand in developed markets and a weaker U.S. dollar.
UBS has cut its earnings per share forecast for SIA in fiscal 2012 to $0.60 from $0.84 and to $0.87 from $1.03 for 2013 after the airline reported poor first quarter earnings, partly due to slower demand in developed markets and a weaker U.S. dollar.
SIA said its first quarter net profit fell by a worse-than-expected 82% to $45 million from a year ago, hit by soaring jet fuel prices.
UBS also noted that SIA's forward booking indicated flat passenger volume year-on-year, while seat capacity was expected to grow 5%.
“Cargo demand seems to have bottomed out though there is no sign of a rebound,” said UBS in a report.
At 10:50 a.m., shares of SIA fell 10.3% to $12.85 due to going ex-dividend. Its shares have fallen 16% since the start of the year.
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