SIA Engineering price target cut 11.1% to $4 by CIMB

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

Research House: CIMB

Price Call: SELL

Target Price: 4.00

SINGAPORE (Nov 5): CIMB has cut its price target for SIA Engineering to $4.00 from $4.50 after lowering its FY2015 to FY2017 earnings per share estimates by 11% to 14% to factor in lower contributions from the company's associates and joint ventures.

The changes came after SIA Engineering said its earnings for the three months to Sept 30 fell 40.7% y-o-y to $42.1 million on lower revenue from its airframe and component overhaul business, as well as higher sub-contracting costs and reduced contributions from associates and joint ventures.