SINGAPORE (Oct 17): OCBC Investment Research is upgrading Singapore Airlines to “buy” with $10.71 peak fair value as the stock is trading at depressed valuations with negative news likely priced in.

In a Wednesday report, analyst Low Pei Han says SIA is now trading at its 52-week low of $9.15. This is close to the 2008 crisis low of $9.05 and 11% higher than the 2002-2003 Sars crisis low of $8.25. The stock is trading at just 0.8 times consolidated forward book, close to its 2008 lows as well, adds Low.

Although Low shares market concerns about rising fuel prices, she notes that for FY19, about 45% of SIA’s fuel needs are hedged while SIA’s current share price is now even lower than previous instances when Brent was trading at much higher levels.

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