Nomura raises SIA Engineering's (S59.SG) target price to $4.80 vs $4.05 after increasing FY11-FY12 earnings estimates by 4.9%, 3.9% respectively, to reflect stronger revenue from line maintenance, fleet management businesses, rolling over of discounted cashflow valuation base to FY11, says Dow Jones. Keeps Buy call.

Nomura says: “We believe the 1Q FY11 results will likely mark the start of a strong earnings recovery in the aircraft MRO (maintenance, repair, overhaul) business this year and next year.”

Research house expects company to gain from increased tourist-arrivals to Singapore, pick-up in cargo operations, capacity reinstatement, fleet expansion by key customer Singapore Airlines (C6L.SG). Shares +0.2% at $4.14.