0606 GMT - Singapore Airlines lacks near-term catalysts to sustain its high valuation, analysts at UOB Kay Hian write in a note. Despite its strong operational track record, SIA's earnings are likely moderating downwards in the near to medium term, with December's passenger capacity at 99.9% of prepandemic levels, they note. The industry wide supply-demand balance may remain relatively tight this year, as aircraft deliveries in 2024 fell well below expectations, which is favorable for passenger yields, they add. UOB KH projects 3Q FY 2025 core earnings at S$500 million-S$600 million, a significant rebound from 2Q due to strong seasonality and a sequential decline in jet fuel prices. UOB KH retains a sell rating on the stock with a target price of S$5.80. Shares are 0.2% higher at S$6.28. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
January 16, 2025 01:06 ET (06:06 GMT)
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