SIA Engineering reported Q3 results PATMI of SGD 204.2m, with revenues 8% weaker YoY on lower fleet managemen and project revenue. Nevertheless, the company has managed to save on cost control, contributing to an overall operating margin of 10% YoY.
At current price, the stock is trading at a high PE ratios of 20.5, which is about +1.5 SD above the mean. This means that if you are thinking of entering SIA Eng at this point, bear in mind that you are paying a premium valuation. The RSI also indicates an overbought situation, given its recent surge in the price in the past week. The stock is yielding about 4.5% at current price.
PhilipsCapital cites the below reasons as catalyst to its TP of S$6.10, which is based on a multiple of 23X FY14. To me, it is rather ambitious in stating its target price, given ......