Our end-CY22F target price for SIA remains at S$5.88, still based on an unchanged target P/BV multiple of 1.06x (1 standard deviation above the mean since 2011 of 0.93x), applied to the end-FY23F adjusted BVPS.
We use a P/BV that is above the mean to reflect our optimism over the meaningful reopening of international travel markets by mid-CY22F. Valuing SIA at a P/BV mean of 0.93x (since 2011) yields a fair value per share of S$5.16.
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