SIA Engineering Co, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Roy Chen from UOB Kay Hian downgraded the rating on the stock to a Hold and gave it a S$3.41 price target.
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Roy Chen has given his Hold rating due to a combination of factors related to SIA Engineering Co’s recent financial performance and market valuation. The company’s net profit for the first quarter of fiscal year 2026 exceeded expectations, largely driven by strong contributions from joint ventures and associates. However, despite this positive earnings surprise, the operating profit did not meet projections, indicating no significant improvement in operating margins even after the renewal of a major contract with Singapore Airlines.
Furthermore, the recent surge in SIA Engineering’s share price has brought its valuation to a level that Roy Chen considers fair, leading to a downgrade to a Hold rating. The target price set at S$3.41 reflects this assessment, suggesting limited upside potential in the near term. Overall, while the earnings beat is a positive sign, the lack of operating margin improvement and the current market valuation justify a cautious stance.
In another report released on July 15, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a S$3.00 price target.