SINGAPORE – Singapore Airlines shares took a hit on May 16 in the wake of investor concerns that rising costs will dent what has been a record-breaking period for the carrier.
SIA’s operating profit rose $34 million to $2.6 billion in the 12 months to March 31, 2024, while Scoot’s operating profit fell $30 million to $118.1 million.UOB Kay Hian analyst Roy Chen is maintaining a hold call on SIA and leaving the target price unchanged at $6.31. The analyst said that while SIA recorded a 24 per cent jump in net profit to $2.7 billion, the core net income would have been around $2.5 billion, which is about 2 per cent shy of market estimates, if the one-off tax credit was excluded. DBS has a hold call and a target price of $6.10.
Mr Goh said SIA is well-positioned, notwithstanding headwinds such as intensifying competition, rising costs, supply chain challenges, climate change and geopolitical tensions. Pending regulatory approvals, SIA will own a 25.1 per cent stake in the enlarged Air India Group, comprising Air India, Air India Express, AirAsia India and Vistara
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Source: The Straits Times - 🏆 8. / 63 Read more »
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