Singapore Airlines is likely to enjoy continued healthy passenger and cargo demand, OCBC Investment Research's Ada Lim says in a research report.
SIA posted improved operating results in 3Q FY 2025 such as passenger-flown revenue growing 1.7% on year on the back of a record 10.2 million passengers flown, the analyst notes.
Also, SIA's cargo-flown revenue rose 9.7% on year in 3Q on higher cargo loads driven by robust year-end demand from e-commerce, the analyst adds.
Management is optimistic that demand for SIA's passenger and cargo segments will remain robust in 4Q. OCBC raises the stock's fair value estimate to S$6.50 from S$6.30, with an unchanged hold rating.
Shares are 0.75% higher at S$6.70.
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