DBS Group Research maintains SingPost’s 'fully valued' call on tough competition

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.”