UOB Kay Hian analyst K Ajith has upgraded Singapore Airlines (SIA) to “buy” with an increased target price of $3.94 from $3.53 as he feels Singapore’s formation of travel bubbles is “likely to gain momentum” in the next three months.

“Together with the government’s proposal to provide Covid-19 travel insurance, this reduces the risk profile of travellers. We are now more positive on cargo operations rather than the recovery in pax traffic, especially from higher freight rates when the vaccine dissemination gets underway,” he says.

The Singapore government announced on Oct 20, that it will provide subsidies and insurance coverage for Singaporeans, permanent residents and long-term pass holders who develop Covid-19 symptoms within 14 days of their return.

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