What’s next for SIA shares?

• Singapore Airlines Ltd (SGX: C6L) share price rose to a two-month high on Monday (7 November 2022)
• The group posted its highest half-year operating profit in history
• CIMB analysts maintained an ‘add’ rating and S$6.10 share price target
• Keen to trade SIA shares? Start today with an IG account.

SIA stock price target: What’s the latest?

Singapore Airlines (SIA) shares rallied nearly 3% following the release of its latest half-year and quarterly results.
The national airline has seen its stock value increase by 5.6% this year.

As of 8 November 2022, the stock has a consensus rating of ‘neutral’ and average price target of S$5.80, based on analyst sentiments published by SGX StockFacts.

The price target, which is up 7.8% since the start of September 2022, equates to a 9.6% upside potential from SIA’s last traded price of S$5.29 a share.

CIMB’s equity research team posted on 26 October that the outlook for SIA’s October 2022 to December 2022 quarter ‘looks good’. The analysts expect SIA’s available seat kilometres capacity to rise another 13% quarter-on-quarter.

CIMB also kept an ‘add’ call and a price target of S$6.10 on SIA shares.

How did SIA fare in H1 2022/2023?

The group posted a ‘record’ operating profit of S$1.23 billion in the first half and second quarter of FY2022/2023. This is an improvement of S$1.85 billion from the S$620 million loss posted a year before.

SIA said this was due to a surge in demand for air travel after Singapore fully reopened to vaccinated travellers in April 2022 and border restrictions eased across many key markets.

As a result, SIA and Scoot also saw a 13-fold jump in passenger carriage from a year ago, as both airlines carried 11.4 million passengers during the six months to 30 September 2022.

The improved operating performance also allowed the group to post a first half net profit of S$927 million, versus a S$837 million loss in the previous year.

In light of the better performance, the board has declared an interim dividend of S$0.10 per share (tax exempt, one-tier), amounting to a total payout of S$297 million, for the half-year ended 30 September 2022.

The interim dividend will be paid on 22 December 2022 to shareholders.

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