OCBC is keeping Singapore Airlines at a “buy” rating with $12.50 fair value, forecasting cheap fuel will drive its earnings recovery.
SIA recently signed a code share deal with Air China, its Star Alliance partner.
OCBC however says SIA risks diluting its brand in China with the move although the alliance may open up “further opportunities” between the two airlines.
In 2007, SIA attempted to buy a stake in China Eastern Airlines but failed due to opposition from the Chinese airline's minority shareholders.
SIA has been signing partnership deals with other airlines and tourism boards of different countries as it responds to competition from Persian Gulf-based carriers such as Emirates Airline and Qatar Airways on its key Europe and US routes.
SIA closed 1.15% higher at $11.47 on Wednesday.
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SIA recently signed a code share deal with Air China, its Star Alliance partner.
OCBC however says SIA risks diluting its brand in China with the move although the alliance may open up “further opportunities” between the two airlines.
In 2007, SIA attempted to buy a stake in China Eastern Airlines but failed due to opposition from the Chinese airline's minority shareholders.
SIA has been signing partnership deals with other airlines and tourism boards of different countries as it responds to competition from Persian Gulf-based carriers such as Emirates Airline and Qatar Airways on its key Europe and US routes.
SIA closed 1.15% higher at $11.47 on Wednesday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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