Singapore Exchange: Resilient Earnings, Diversified Derivatives Growth and Rising Dividends Support Buy Rating

Analyst Glenn Thum of Phillip Securities maintained a Buy rating on Singapore Exchange, with a price target of S$18.30.

Glenn Thum has given his Buy rating due to a combination of factors that highlight Singapore Exchange’s resilient earnings profile and growth visibility. He notes that first-half FY26 revenue and profit were in line with full-year expectations, with gains in core operating segments more than offsetting weaker treasury income from lower interest rates. The fixed income, currencies and commodities (FICC) division delivered double‑digit growth, driven by robust expansion in currency and commodity derivatives, as well as steady progress in the OTC FX franchise. At the same time, the equities business benefitted from higher cash market trading activity, which supported overall revenue despite softer equity derivatives volumes.
Furthermore, Thum emphasizes the attractive and rising dividend profile, with interim distributions showing strong year‑on‑year growth and management reiterating plans to lift the dividend per share steadily each quarter. He also raises the target price by assigning a higher valuation multiple, reflecting confidence that SGX’s diversified growth engines, especially in OTC FX and derivatives, will unlock operating leverage as volumes scale. In his view, macro drivers such as policy uncertainty and an easing U.S. rate cycle should sustain trading activity into 2026, helping to counteract the drag from lower treasury yields. Taken together, these operational strengths, supportive industry trends, and improving shareholder returns underpin his Buy recommendation on Singapore Exchange.

According to TipRanks, Thum is a 5-star analyst with an average return of 16.9% and an 83.91% success rate. Thum covers the Financial sector, focusing on stocks such as OCBC, Bank of America, and JPMorgan Chase.

In another report released today, TipRanks – Google also initiated coverage with a Buy rating on the stock with a S$21.00 price target.