UOB Kay Hian analyst K Ajith has downgraded Singapore Airlines (SIA) to “sell” as he feels the airline is now “overvalued”.

In fact, SIA is more expensive now than it was two years ago.

“While the recent debt issuance would stave off operational risks, shareholder returns are likely to be severely crimped from higher interest payments as well as low return on invested capital (ROIC),” he writes in a Dec 4 report.

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