SINGAPORE (Oct 28): CIMB Securities is upgrading its “hold” call to “add” on Singapore Post (Singpost) with a higher target price of $1.76 as UOB Kay Hian and Maybank Kim Eng are reiterating their “buy” calls on the stock, both with price targets of $1.77.
All three research houses have unanimously expressed positive views on Singpost’s recent announcement of its completed joint venture (JV) agreement with Alibaba in Quantium Solutions, which will allow both Singpost and Alibaba to grow their e-commerce logistics network.
They have also highlighted more to come with the Info-communications Media Development Authority’s (IMDA) granting of regulatory approval on Alibaba’s second investment in Singpost, to increase its stake in the postal service provider from 10.2% to 14.4%.
