$SIA (C6L.SG)$ UOB KH has downgraded UOB to SELL on the stre...

UOB KH has downgraded UOB to SELL on the stretched valuation, with a higher tp of 7.07 from 5.75, favourably valued based on a 1.44x FY24F P/B (2SD above historical mean).

SIA's recent share price outperformance is likely driven by fund flows. While they appreciate SIA's outstandingness among regional peers and expect upbeat 1QFY24 results, they caution that SIA's valuation is very lofty, with its FY24F P/B of 1.58x (2.8SD above historical mean) matching the historical peak just before the global financial crisis (GFC).