CGS-CIMB remains positive on SIA on 'narrow 3Q loss' and attempts at reducing cash burn

CGS-CIMB Research analyst Raymond Yap has reiterated his “add” call on Singapore Airlines (SIA) in a report on Feb 5, with a lower target price of $4.89 from $4.91 previously.

Yap’s recommendation comes on the back of the airline’s net loss of $142 million for the 3QFY2021 ended December.

The airline’s core net loss of $160 million during the quarter is narrower than the $1 billion and $726 million net losses reported by the airline in 1QFY2021 and 2QFY2021 respectively, which should “please the market”, writes Yap.