According to SingPost, the review will aim to strike a balance between the long-term commercial sustainability of the company and providing essential postal services for Singapore.
CGS-CIMB Research analyst Ong Khang Chuen has maintained his “hold” recommendation for Singapore Post (SGX:S08
) (SingPost) despite the company’s newly announced strategic review of its postal services. He has kept his target price unchanged at 55 cents.
In his report dated July 6, Ong says that he sees SingPost’s review of the commercial sustainability of its postal business together with the Infocomm Media Development Authority (IMDA) as a “step in the right direction”, and believes this will help its near-term share price sentiment given that the company’s post and parcel segment is loss-making.
