Singapore Airlines: Balancing Recovery and Risks Amid Geopolitical Tensions and Market Opportunities

SIA – Singapore Airlines (SINGF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Roy Chen from UOB Kay Hian maintained a Hold rating on the stock and has a S$6.63 price target.

Roy Chen has given his Hold rating due to a combination of factors influencing Singapore Airlines’ current market position. The airline’s operational data for May 2025 showed a positive trend with passenger and cargo loads increasing year-over-year, which indicates a recovery towards pre-pandemic levels. However, despite these improvements, the overall passenger network has not fully returned to its pre-pandemic size, suggesting some limitations in growth potential.
Another factor contributing to the Hold rating is the geopolitical tensions in the Middle East, which could lead to higher jet fuel prices, impacting the airline’s profitability. While the closure of Jetstar Asia provides an opportunity for market share expansion at Changi Airport, the uncertainties in the global trade environment and potential cost pressures from fuel prices warrant a cautious outlook. Thus, maintaining a Hold rating reflects a balanced view of the airline’s potential risks and opportunities, with a target price set at S$6.63.

In another report released on June 12, DBS also maintained a Hold rating on the stock with a S$6.40 price target.