Analysts remain bearish on SIA after worse-than-expected Q4 losses

ANALYSTS remain bearish on Singapore Airlines (SIA) after the national carrier delivered worse-than-expected losses in the March quarter and a dismal operating update for the month of April, while offering little earnings visibility for the year ahead.

In a note on Friday, Credit Suisse analysts Louis Chua and Shaun Tan maintained a "neutral" rating on SIA but cut their 12-month target price to S$3.35, pegged to 0.8 times its adjusted net asset value per share of S$4.19 for FY21 ending March 31, 2021.

They wrote: "SIA highlighted (that) there is no visibility on the timing or trajectory of the recovery, but does not assume to reach pre-Covid levels in the next one to 1.5 years.