In a report released yesterday, Wee Kuang Tay from CGS-CIMB reiterated a Buy rating on Singapore Exchange, with a price target of S$17.70.
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Wee Kuang Tay has given his Buy rating due to a combination of factors influencing the Singapore Exchange’s performance. The company has demonstrated robust revenue growth across its business segments, with securities daily average value reaching a four-year high and a significant increase in derivatives volume. This indicates a strong position as a multi-asset platform capable of supporting medium-term revenue growth targets.
Additionally, the Singapore Exchange is committed to enhancing shareholder returns, as evidenced by its proposed dividend per share increments over the next few years. Despite a slight reduction in earnings estimates due to lower treasury income, the company remains well-positioned for potential earnings upside. This is supported by macroeconomic factors and government initiatives that could further boost the stock’s performance. The potential for strategic acquisitions and increased trading volumes further reinforces the positive outlook, making the stock a compelling buy.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$18.20 price target.