Share this
Digg
Del.icio.us
StumbleUpon
Netscape
Yahoo
Technorati
Googlize this
Facebook
Export PDF
Print
E-mail
DMG upgrades Singapore Exchange (S68.SG) to Buy from Neutral and raises its target price to $9.45 from $8.33. The house says SGX’s share price underperformed over the past year, but could outperform ahead.
The house raises its fiscal FY12 average daily turnover assumption by 8% to $1.90 billion on expectations trading volumes will rise, “given increased interest in market developments in the U.S. and EU, and on the domestic front.”
The house raises its fiscal FY12 average daily turnover assumption by 8% to $1.90 billion on expectations trading volumes will rise, “given increased interest in market developments in the U.S. and EU, and on the domestic front.”
DMG says while the STI has risen 10% on year, SGX’s share price has fallen 1.4%; “We believe SGX’s underperformance could be reversed on the back of increased market volatility.” The house assumes in its model that the merger with ASX (ASX.AU) proceeds.
“In the event the merger cannot proceed, SGX growth prospects will be impacted and SGX should only be valued at $8.48.” The house estimates fiscal 2Q11 net profit of $86 million, +16% on quarter, driven largely by sequentially stronger securities volume. Shares are +0.6% at $8.41.
