DBS Group Research analysts Sachin Mittal and Lim Rui Wen have maintained their “fully valued” recommendation for Singapore Post Limited (SingPost), with a stable target price of 64 cents, which represents a 14% downside on the stock due to the lack of near-term catalysts.
Due to COVID-19, SingPost saw a steep decline in domestic mail revenue, which comprises a large portion of their revenue, say the analysts in a report dated July 29.
Mittal and Lim believe that “international mail, on the other hand, may slowly recover in 2HFY21F as economic activities resume.”
