0908 GMT - Singapore Airlines' shares have limited near-term catalysts, OCBC Investment Research analyst Ada Lim says in a report. Passenger and cargo yields appear to be moderating as other airlines increase their capacity in the market, Lim says. The risk-reward is looking less attractive, as shares have retraced 10.8% since Aug. 5 after correcting close to 15% ex-dividend and after its 1Q business update, Lim notes. Any potential upside from the Air India merger with Vistara, SIA's joint venture with Tata Sons, will only be realized in the medium to long term, as Air India is still loss-making and further investments are likely needed, Lim adds. OCBC has a fair value estimate of S$6.84 with a hold rating on the stock. Shares are 0.15% lower at S$6.59. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
September 19, 2024 05:08 ET (09:08 GMT)
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