DBS Group Research analyst Paul Yong has maintained his “hold” call on Singapore Airlines (SIA) with a significantly reduced target price of $3.75 from $6.60 previously.
Yong says the new target price is based on a 0.8x P/B against a projected return on equity (ROE) of 2.7% for FY22F.
“Our book value per share calculations assume the MCBs are debt rather than equity as we see SIA redeeming the MCBs within 10 years,” he says in a July 29 report.
