SGX kept at 'buy' with $9.50 target price by Goldman Sachs

Stock Name: SGX
Company Name: SINGAPORE EXCHANGE LIMITED

Research House: Golman Sachs

Price Call: BUY

Target Price: 9.50

SINGAPORE (Feb 16): Investor concerns over the profitability of Singapore Exchange's derivatives business are unwarranted, says Goldman Sachs. As such, the house maintains its "Buy" call for SGX with a target price of $9.50.

Goldman Sachs notes that concerns over SGX's profitability and operating leverage have increased recently as its derivatives business is believed to be of lower profitability, which is largely due to its high cost. Royalty payments tied to derivatives volumes to index managers rose 50% q-o-q during 2QFY15.