OCBC is maintaining its “buy” call on Singapore Airlines with $12.50 fair value after SIA last week raised its stake in the Australian carrier to 23.11% from 22.91%.
OCBC sees SIA’s small stake increase in Virgin Australia as a statement of the Singapore flag carrier's commitment to the Australian carrier.
OCBC also does not rule out SIA buying Air New Zealand's stake in Virgin Australia.
Air New Zealand owns 25.9% of Virgin Australia and announced last month it was willing to sell a part, or its entire stake in the carrier.
Australia is a key market for SIA, and a majority stake in Virgin Australia may help it compete more effectively with the existing dominant player -- Qantas Airways, OCBC says in a note.
As at 9.27am, SIA shares are up 0.35% at $11.35.
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OCBC sees SIA’s small stake increase in Virgin Australia as a statement of the Singapore flag carrier's commitment to the Australian carrier.
OCBC also does not rule out SIA buying Air New Zealand's stake in Virgin Australia.
Air New Zealand owns 25.9% of Virgin Australia and announced last month it was willing to sell a part, or its entire stake in the carrier.
Australia is a key market for SIA, and a majority stake in Virgin Australia may help it compete more effectively with the existing dominant player -- Qantas Airways, OCBC says in a note.
As at 9.27am, SIA shares are up 0.35% at $11.35.
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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