SINGAPORE (June 28): CIMB Research is downgrading SIA Engineering from "hold" to “reduce” with a lower price target of $3.86 in view of the stock’s expensive valuations and limited catalysts.
CIMB also recommends switching out of SIA Engineering into ST Engineering given to the latter’s structural “sweet spot” of smart nations and more defensive earnings profile with diversified business segments.
In a Tuesday report, analyst Lim Siew Khee says SIA’s divestment of its parent stake in SIA Engineering is unlikely as there are other avenues for the group to manage its balance sheet.
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)
