“1Q2024 shows downgrades are bottoming, while earnings have upside surprise potential,” he says.
Maybank Securities analyst Thilan Wickramasinghe is maintaining a positive outlook for the Singapore market, raising his target for the Straits Times Index (STI) to 3,583 points. The new target still follows a 50:50 ratio weighting of bottom-up fundamentals and an unchanged target P/E and P/B methodology. This higher target offers an upside of 7%.
In his report dated June 5, Wickramasinghe notes that the Singapore market should benefit amidst changing rate expectations. While 1Q2024 has shown bottoming downgrades, earnings have displayed a “surprise” upside potential.
