$SINGAPORE AIRLINES LTD(C6L.SI)$

Singapore Airlines (SIA) - CGS-CIMB Research 2021-12-01: Upgrade To ADD After Omicron Sell-Off

Singapore Airlines (SIA) - Upgrade To ADD After Omicron Sell-Off

SINGAPORE AIRLINES LTD (SGX:C6L) | SGinvestors.io

Upgrade SIA (SGX:C6L) from HOLD to ADD, as SIA's share price has fallen 8% since last Friday when news of the Omicron variant broke (-13% from mid-Oct high of S$5.55).

Our target price for SIA is tweaked higher to S$5.86 after raising FY23-24F earings per share forecasts, still based on P/BV of 1.06x (+1 standard deviation), against our adjusted FY23F BVPS.

Re-rating catalysts include the rapid expansion of VTL schemes and strong year-end airfreight markets, which should see SIA deliver a strong 3QFY22F.

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