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Singapore Post Downgraded as It Refocuses on Core Operations

Story Highlights
  • Singapore Post has been downgraded to ‘BBB-‘ after divesting key Australian businesses.
  • The company will focus on core postal operations amid industry challenges and deleverage with sale proceeds.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Singapore Post Downgraded as It Refocuses on Core Operations

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An update from Singapore Post ( (SG:S08) ) is now available.

Singapore Post Ltd. has been downgraded to ‘BBB-‘ by S&P Global Ratings following its decision to divest its Australian logistics and freight-forwarding businesses, which were significant contributors to its operating profits. This strategic shift marks a departure from its previous strategy of establishing a strong presence in Australia, and the company is now focusing on its core postal and logistics operations, which face structural and profitability challenges. The sale proceeds are expected to significantly deleverage the company, bringing it to a net cash position in the next two years, while the stable outlook indicates a cautious approach to future investments and management of industry decline.

The most recent analyst rating on (SG:S08) stock is a Buy with a S$0.77 price target. To see the full list of analyst forecasts on Singapore Post stock, see the SG:S08 Stock Forecast page.

More about Singapore Post

Singapore Post Ltd. operates in the postal and logistics industry, focusing on mail, logistics, and e-commerce solutions. The company has been scaling down its operations, particularly in Australia, and is now concentrating on its core postal and logistics services amid industry challenges.

Average Trading Volume: 10,259,012

Technical Sentiment Signal: Buy

Current Market Cap: S$1.41B

Learn more about S08 stock on TipRanks’ Stock Analysis page.

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