OCBC Investment Research raised its target price on SIA
Engineering Co Ltd to S$4.48 from S$4.14 and kept its
'hold' rating, citing a positive longer-term outlook for its
maintenance, repair and operations business.
By 0238 GMT, SIA Engineering shares were down 0.7 percent at
S$4.37. They have gained 27.4 percent since the start of the
year, compared with the Straits Times Index's 19
Global passenger aircraft fleet is expected to grow by 3.8
percent a year from now till 2030, with most coming from the
Asian market. OCBC noted that this will benefit SIA Engineering,
which has a Singapore base and regional joint ventures and
The brokerage also said SIA Engineering's management expects
demand for its core businesses will be sustained in the near
term, despite the contraction in air freight volumes and as poor
consumer confidence weighs on the aviation sector.
1040 (0240 GMT)