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DBS upgrades SIA to 'buy' on 'colossal' pent up demand for travel

The Edge Singapore
The Edge Singapore5/17/2022 01:32 PM GMT+08  • 2 min read
DBS upgrades SIA to 'buy' on 'colossal' pent up demand for travel
DBS analysts see "colossal" pent up demand for travel / The Edge Singapore
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DBS Group Research has upgraded Singapore Airlines from “hold” to “buy” with the expectation that the country’s flag carrier is enjoying a recovery in passenger volumes faster than its regional peers.

The pick up started last September after Singapore opened the so-called vaccinated travel lanes last September, which was followed by further easing of rules. “We expect this trend to persist,” write analysts Paul Yong and Jason Sum in their May 17 note.

“Colossal pent-up travel demand and the gradual restoration of passenger capacity will support passenger yields,” add Yong and Sum, who have a new target price of $6.20 from $4.90 previously. The new target price is pegged to 1.3x SIA’s FY2023 and FY2024 book value.

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