CGS-CIMB analyst Ngoh Yi Sin is maintaining her “add” call with the same target price of 77 cents on Singapore Post (SingPost) following the company’s acquisition of a 38% stake in Australian 4th party logistics service company Freight Management Holdings (FMH) for A$85.0 million ($84.1 million) on Oct 16.

See: SingPost acquires 38% stake in Australian freight company for $84.1 mil

While Ngoh sees the acquisition as “accretive but slightly pricey”, she notes that it will allow SingPost to further capitalise on the growing e-commerce market in Australia.

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