Phillip Securities analyst Hashim Osman has maintained their neutral stance on SINGF stock, giving a Hold rating yesterday.
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Hashim Osman has given his Hold rating due to a combination of factors relating to both SIA’s strengths and its risks. On the positive side, the airline delivered robust operational results, with higher passenger yields, rising traffic, and improved load factors, all supported by sizeable fuel hedging gains that lowered net fuel costs and underpinned healthy margins.
However, significant losses from associates, particularly Air India, have substantially diluted overall earnings and are expected to remain a drag in the near term. In addition, sector risk has risen amid geopolitical tensions, and SIA faces potential margin pressure as cheaper fuel hedges roll off, prompting a reduction in the target price from S$7.00 to S$6.43 and supporting a neutral, Hold stance despite the company’s solid balance sheet and special dividend policy.
According to TipRanks, Osman is a 2-star analyst with an average return of -0.5% and a 33.33% success rate. Osman covers the Industrials sector, focusing on stocks such as SIA Engineering Co, SIA – Singapore Airlines, and SATS.
In another report released yesterday, DBS also maintained a Hold rating on the stock with a S$6.50 price target.