SIA's Q2 FY2023/24 Earnings Preview: Here Are the Key Factors to Watch

Moomoo News SG wrote a column · Nov 3, 2023 18:34

Of the four analysts covering $SIA (C6L.SG)$ since October, two have recommended a "buy" rating, while one remains "neutral". Additionally, one analyst has given a "sell" rating.

The analysts' target price ranges from 5.66 SGD to 9.17 SGD, indicating a potential upside of approximately 14.1% compared to the current price.

CGS-CIMB's analyst Raymond Yap expects a lower target price of S$5.66 for SIA due to higher oil prices that threaten FY24-26F core EPS estimates: "Every US$1/Bbl increase in oil price will hit SIA's core net profit by 1.8%. Increasing competition from other airlines is expected to cause SIA's pax and cargo yields to gradually decline, leading to a further downgrade of forecasts."