SIA Engineering cut to "sell", target lowered to $3.80 by OCBC

Stock Name: SIA Engineering
Company Name: SIA ENGINEERING CO LTD

Research House: OCBC

Price Call: SELL

Target Price: 3.80

SINGAPORE (Nov 6): OCBC Investment Research has downgraded SIA Engineering to "sell", citing disappointment with the company's September-quarter results.

Earnings fell 40.7% y-o-y to $42 million on lower revenue, higher operating expenses, and reduced contributions from joint ventures and associates.

"We think SIA Engineering is going through (a) cyclical period where customers are deferring aircraft checks (i.e. increased intervals between checks)," OCBC analyst Eugene Chua said in a note.