SINGAPORE (Oct 10): UOB KayHian is placing SIA Engineering’s “sell” recommendation and $3.60 target price under review pending the release of its interim earnings in November.
UOB has been bearish on SIAEC for almost three years. The stock now trades at a “more reasonable” 21 times FY18 forward earnings but the house prefers to wait for better catalysts before re-rating the stock.
These include stable staff costs, improving line maintenance earnings and higher JV and associate income or at least guidance along the same lines.
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