0231 GMT - Singapore Airlines will likely see earnings moderate downwards in the next two years, UOB Kay Hian analyst Roy Chen writes in a research note. Passenger and cargo yield will likely moderate as competitors continue adding capacity, but profits will likely remain above pre-pandemic levels given its strong market leading position, Chen says. Key risks would be a weaker-than-expected macroeconomic environment impacting air travel and air cargo demand, and unfavourable jet fuel prices, Chen writes. There remains potential upside if it takes longer for competitors to catch up with capacity recovery, Chen adds. Chen raises the stock's target price slightly to S$6.35 from S$6.31 and keeps a hold rating. Share are 0.7% lower at S$6.72. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
May 20, 2024 22:31 ET (02:31 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments