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UOB has SIA on ‘hold’ with latter still working on strategy to stem losses

Ko Ding Wei
Ko Ding Wei5/22/2017 10:47 AM GMT+08  • 2 min read
UOB has SIA on ‘hold’ with latter still working on strategy to stem losses
SINGAPORE (May 22): UOB Kay Hian is maintaining its “hold” call on Singapore Airlines (SIA), suggesting investors enter at $9.00 with a revised target price of $10.00, down from $10.10.
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SINGAPORE (May 22): UOB Kay Hian is maintaining its “hold” call on Singapore Airlines (SIA), suggesting investors enter at $9.00 with a revised target price of $10.00, down from $10.10.

Analyst K Ajith found the 5% rise in the parent airline’s non-fuel cost and SIA’s inability to pass on at least part of the fuel cost increases troubling.

This means SIA’s aggressive price discounting to promote demand has not been able to enhance network connectivity and offset its non-profitable long haul routes.

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