RHB sees "no near-term re-rating catalysts in sight" for SGX, lowers TP to $9.80

RHB Group Research analyst Shekhar Jaiswal maintains a ‘neutral’ rating on SGX, with a lower target price of $9.80 from $10.30, experiencing a 3% upside.

“While we are positive on Singapore Exchange’s long term growth prospects from its latest acquisitions and potential pipeline of new listings, soft securities daily average value (SDAV) for 1HFY2022 (June) and concerns related to rising competition and higher operating costs could mean that its earnings and share price would struggle to re-rate in the near-term,” Jaiswal says. “We lower FY2022-FY2024 by 4-5%.”