Top 5 Singapore stocks to watch in June 2022

These five Singapore-listed equities are among analysts' most recommended to trade for the month of June 2022, based on their latest ratings, price targets and research.

1. Singapore Airlines Ltd (SGX: C6L)

2. DBS Group Holdings Ltd (SGX: D05)

3. Singapore Telecommunications Ltd (SGX: Z74)

4. Ascendas Real Estate Investment Trust (SGX: A17U)

5. Singapore Exchange Ltd (SGX: S68)

1. Singapore Airlines (SGX: C6L)

The national carrier has an average price target of S$5.36 (representing a 3.1% downside from its latest trading price of S$5.53) and rating of ‘neutral’, based on SGX StockFacts consensus data on 31 May 2022.

DBS analysts raised their price target for Singapore Airlines (SIA) to S$6.20 from S$4.90 in mid-May, while upgrading a ‘hold’ call to ‘buy’, on the back of higher net profit estimates.

They noted that SIA could rebound faster than anticipated, as the lifting of regional travel restrictions continue to pick up pace.

DBS posited that SIA is likely to be the regional frontrunner as countries reopen to tourists and airlines recover. In particular, Japan’s reopening to tourists is expected to drive a significant revival in inter-region travel for the group.

Analysts are also expecting SIA’s passenger volumes to hit 70% and 96% of pre-pandemic levels by end-FY2023 and end-FY2024 respectively.

2. DBS Group (SGX: D05)

DBS shares have fallen as much as 10% since the group announced its Q1 2022 earnings, where it saw a 10% year-on-year net profit decline to S$1.8 billion.

The blue-chip counter is also down by approximately 4% year-to-date, as markets continue to grapple with the potential economic impact of China’s stringent Covid-zero stance.

The latest analyst sentiments published by SGX StockFacts show a consensus rating skewed towards ‘outperform’, alongside a price target of S$38.11 on the stock.

The price target equates to a 20.9% upside potential from DBS’ last traded price of S$31.51 on 31 May 2022.

RHB and Maybank analysts recently reiterated ‘buy’ calls on the bank’s stocks. However, both research teams lowered their price targets, with RHB reducing their estimate from S$42.70 to S$38.10, and Maybank cutting their price target from S$41.82 to S$41.22.

3. Singapore Telecommunications (SGX: Z74)

Singtel’s share price is currently on the decline, after its operating revenue dropped by 6.5% year-on-year to S$7.69 billion in the second half of 2022. Short sell volume hit a new high of 18.4 million shares on Monday (30 May 2022).

The telco’s stock is also down some 4% in the last one month alone but is up by nearly 14% on a year-to-date basis.

In terms of outlook, Singtel shares have a consensus rating of ‘outperform’ and an average price target of S$3.12 (equating to a 18.6% upside from its last traded price of S$2.63), based on the latest SGX StockFacts data.

The latest investment thesis came from UOB’s equity research team, who reiterated a ‘buy’ call on the stock on 30 May 2022, while keeping price target unchanged at S$2.90 a share.

On the other hand, RHB raised its price estimate on the stock to S$3.55 from S$3.37 and kept a ‘buy’ rating.

4. Ascendas REIT (SGX: A17U)

Ascendas Real Estate Investment Trust (AREIT) share price retreated 1.4% in the month of May 2022, despite announcing that it will be acquiring seven Chicago-based logistics properties for S$133.2 million.

The real estate group’s shares are down by roughly 6% so far this year, amid concerns of sharp interest rate hikes and the global economic impact of China’s ongoing Covid-zero measures.

The blue-chip counter, which has an average price target of S$3.26 and rating of ‘outperform’ (based on the most updated SGX StockFacts data). The price target represents a 17.7% upside from AREIT’s last traded price of S$2.77 a share.

OCBC analysts provided the latest price estimate and thesis on AREIT. They lowered their price target on the stock to S$3.43 from S$3.84, but maintained a ‘buy’ rating in early-May.

5. Singapore Exchange (SGX: S68)

Singapore Exchange (SGX) shares rallied to a two-month high of S$9.92, after derivatives trading volume ‘rose to a record’ in April 2022.

The blue-chip counter is up 4.5% on a year-to-date basis.

The latest analyst sentiments published by SGX StockFacts show a consensus rating hovering between ‘neutral’ and ‘outperform’, alongside a price target of S$10.183 on the stock.

The price target equates to nearly 4% of upside potential from SGX’s last traded price of S$9.80 on 31 May 2022.

CIMB analysts previously reiterated an ‘add’ call and price target of S$10.40 on the stock, with UOB rating the stock a ‘hold’ while raising price target to S$9.33 (from S$9.09).

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