DBS’s Jason Sum believes that with flag carrier Singapore Airlines (SGX:C6L
) (SIA) sticking to its strategy of maintaining a young, technologically advanced fleet of aircraft, SIAEC will be provided maintenance opportunities aplenty, as indicated by a recently announced contract renewal.
Analysts are viewing SIA Engineering Company (SIAEC) favourably as it gears up to capture further maintenance, repair and overhaul (MRO) growth, with their higher price targets sending the stock up by nearly a third in the past month alone.
DBS Group Research (DBS) and OCBC Investment Research (OIR) have both kept their “buy” calls on the stock at a higher target price of $3.50 from $2.80 and a higher fair value of $3.50 from $3.00, respectively.
