by winston » Wed Nov 10, 2010 12:08 pm
Not vested
RESEARCH ALERT-DMG ups target for SIA to S$18.50; keeps "buy"
SINGAPORE, Nov 10 (Reuters) - DMG Research has raised its target price for Singapore Airlines , the world's second-largest carrier by market value, to S$18.50 from S$17.90 and maintained its "buy" rating.
STATEMENT: DMG said SIA's results were in line with its estimates and it expects the airline to sustain yield momentum on the back of continuing growth in passenger numbers, particularly as the peak holiday season starts.
The brokerage has assigned a price-earnings multiple of 13 times on SIA, versus its peers' 12.2 times, to account for the carrier's global dominance and strong balance sheet.
DMG said it has rolled over its valuations to reflect SIA's 2012 financial year earnings to which it has pegged the price-earnings ratio of 13 times to derive the higher target price of S$18.50.
SIA earned S$380.2 million ($295.9 million) in the quarter ended September, compared with a S$159 million loss a year ago.
helped by a strong recovery in passenger traffic, especially the premium segment. [ID:nSGE6A80HU] At 0229 GMT, SIA shares were down 0.6 percent at S$16.22 on a volume of 548,000 shares.
Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"