Brokers' take

SingPost | Buy Target price: S$1.61 Feb 5 close: S$1.43 DBS Group Research, Feb 5

WE upgraded Singapore Post to "Buy" as we think its postal segment's margin decline may have bottomed out, eCommerce segment's turnaround in place that offsets pressures at logistics segment.

We now have a more positive view over the long-term growth outlook for SingPost. We believe that SingPost, being the dominant player locally with low cost of capital, is well-positioned to establish market leadership in Singapore's fragmented eCommerce logistics sector (about 20 per cent market share in parcels). Our earnings estimates are above consensus currently.