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Brokers keep 'neutral' on SGX, saying positives priced in
A FEW broking houses kept their "neutral" calls on Singapore Exchange (SGX) on Thursday following its second fiscal quarter results, where net profit grew 16 per cent to S$86.6 million on strong derivatives revenue growth.
Nomura had a target price of S$7.90, saying SGX's strong stock performance since October 2014 has priced in the revenue from the strong performance in China A50 contracts.
CIMB Research said SGX was trading at its historical average earnings multiple of 22 times. "We see little reason to chase the stock at these levels," it said, even as it lifted its target price to S$8.08 from S$7.12 previously.
"While the outlook is positive and the momentum is encouraging, we believe the positives are priced in."
DMG & Partners revised its target price up to S$7.65 from S$7.40, and said the results met its expectations.
SGX fell six cents to S$7.84 as of 1.45pm.