Singapore Airlines: Solid Passenger Momentum Offset by Cargo Weakness and Valuation Limits, Justifying Hold Rating

Hashim Osman, an analyst from Phillip Securities, maintained the Hold rating on SIA – Singapore Airlines. The associated price target is S$7.00.

Hashim Osman has given his Hold rating due to a combination of factors tied to Singapore Airlines’ mixed operating trends and valuation. The core passenger segment is performing well, with traffic growth exceeding capacity increases, supporting firmer yields and benefiting the low-cost Scoot unit through new routes and potential traffic diversion from reduced Chinese airline capacity on key regional corridors.

At the same time, cargo revenue is under pressure from weaker pricing and external disruptions, and losses from Air India remain a drag on associate contributions, limiting near-term earnings visibility. While he expects cargo headwinds to ease and recognizes the resilience of the passenger business, the higher target price already reflects these positives, with the P/B multiple now aligned with peers, leading him to see limited upside from current levels and to justify a neutral, or Hold, stance on the shares.

In another report released on February 26, DBS also maintained a Hold rating on the stock with a S$7.50 price target.