SINGAPORE Airlines was revisited by Wall Street analyst Raymond Yap, of CGS-CIMB, who downgraded the stock to a Sell and gave it a S$5.88 (US$4.38) price target, reports New York's Business Insider.
Mr Yap has given his Sell rating due to a combination of factors affecting singapore Airlines' (SIA) financial outlook. The 1QFY25 results for SIA showed a decline in passenger and cargo yields, which fell short of CGS-CIMB's expectations.
Despite lower costs per available seat kilometre, this was not enough to counterbalance the negative impact on profits. Moreover, the airline's stock had been previously buoyed by a final dividend per share for FY24, but with the stock trading ex-dividend the following day, this temporary support was expected to dissipate.
Additionally, he downgraded his target price for SIA shares based on a lower price-to-book value forecast and outlines several potential risks that could further devalue the company's stock.
According to TipRanks, Mr Yap is ranked #4,597 out of 8,944 analysts.
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Mr Yap has given his Sell rating due to a combination of factors affecting singapore Airlines' (SIA) financial outlook. The 1QFY25 results for SIA showed a decline in passenger and cargo yields, which fell short of CGS-CIMB's expectations.
Despite lower costs per available seat kilometre, this was not enough to counterbalance the negative impact on profits. Moreover, the airline's stock had been previously buoyed by a final dividend per share for FY24, but with the stock trading ex-dividend the following day, this temporary support was expected to dissipate.
Additionally, he downgraded his target price for SIA shares based on a lower price-to-book value forecast and outlines several potential risks that could further devalue the company's stock.
According to TipRanks, Mr Yap is ranked #4,597 out of 8,944 analysts.
SeaNews Turkey
