Company Name: SINGAPORE EXCHANGE LIMITED
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 7.25 |
DBS Vickers upgraded Singapore Exchange to ‘hold’ from ‘fully valued’ and raised its target price to
$7.25 from $5.40, citing a gradual pick-up in the bourse’s volumes and values.
SGX shares were down 0.3 % at $6.96 on Wednesday. The stock has advanced 13.5 % so far this year versus the 16 % gain in the broader Straits Times Index.
DBS increased its securities average daily trading volumes estimate to 1.68 billion from 1.57 billion, and average daily trading values forecast to $1.43 billion from $1.34 billion.
“Current valuations are not enticingly attractive but we believe downside should be limited and supported by decent dividend yields of 4-5 %,” DBS said. It raised its 2013-2014 fiscal year earnings estimates by 4 % each.
SGX is slated to report its earnings for the first quarter of 2013 fiscal year on October 18. DBS expects SGX to report net profit of $78 million on the back of $172 million revenues and $74 million expenses for the quarter.
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