Company Name: SINGAPORE EXCHANGE LIMITED
| Research House: DMG | Price Call: SELL | Target Price: 5.40 |
DMG & Partners recommended investors switch from Singapore Exchange to Hong Kong Exchanges and Clearing due to better long-term earnings potential of the Hong Kong bourse.
The remarks came after SGX, Asia’s third-biggest listed bourse, posted a forecast-beating 16 % rise in quarterly profit and said it sees growing interest from international companies to list in the city-state.
SGX Chief Executive Magnus Bocker recently introduced a new business structure in a bid to improve its growth prospects. He is taking direct responsibility for the listings business and overseeing the separate sales and clients unit.
“SGX trades at a price-earnings ratio close to peers such as Hong Kong Exchange, and we see better long-term earnings growth potential for Hong Kong Exchange. Hence, we recommend investors to switch from SGX to Hong Kong Exchange,” DMG said in a report.
The broker has a sell recommendation on SGX stock and a target price of $5.40.
SGX shares gained as much as 1.5% on Wednesday to $6.82. They have risen by around 10 % so far this year, underperforming the 13% gain in the broader Singapore benchmark index.
No comments:
Post a Comment