Home Capital Broker's Calls

SingPost ready to gain, now that pain is over

Michelle Zhu
Michelle Zhu9/20/2016 11:41 AM GMT+08  • 3 min read
SingPost ready to gain, now that pain is over
SINGAPORE (Sept 20): Maybank is switching its stance on Singapore Post (SingPost) from “sell” to “buy” with a higher target price of $1.77 from $1.29 previously to reflect lower new acquisition and execution risk, as well as upward revisions to th
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Sept 20): Maybank is switching its stance on Singapore Post (SingPost) from “sell” to “buy” with a higher target price of $1.77 from $1.29 previously to reflect lower new acquisition and execution risk, as well as upward revisions to the stock’s medium-term profit growth outlook.

In a Tuesday report, analyst John Cheong says the research house’s previous concerns about the postal service provider’s corporate governance issues, falling stock prices and more are “gradually being addressed”. These include:

A ‘more supportive’ board
As a result of the new measures taken since SingPost’s Simon Israel stepped in as chairman in May this year – which includes review of dividend policy and separation of duties between the board and management – Cheong believes the board is now more supportive of the group’s incoming CEO, for which the position is expected to be filled by end-2016. The analyst also expects “a more focused strategy” to build SingPost’s core mail and regional logistics capability with the arrival of a new CEO.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now