
(July 5): Shares of SIA Engineering Co Ltd rise as much as 8.8% to S$2.960 in their best intraday session since Oct 2008
DBS upgrades the stock to "buy" from "hold", raises price target (PT) to S$3.01 from S$2.60; cites renewed optimism over privatisation of co by parent Singapore Airlines
"Given SIE's rather uninspiring stock price performance over the last 12 months, parent SIA could thus view current valuations as attractive for privatisation," DBS says
"The rationale for privatization is also pretty strong, in our view, as SIA currently has close to a 78% stake in its maintenance, repair, operations unit, and the benefits of keeping SIE listed is not entirely apparent," DBS says
DBS says PT upgrade factors in a 20% privatisation premium to the aircraft maintenance provider's last traded price
Stock at its highest since early-Oct 2018
About 10.3 mln shares traded, compared with 30-day avg vol of 432,483 shares