Brokers' take

Singapore Post (SingPost) | Add (upgraded) April 8: S$1.05 Target price: S$1.20 CGS-CIMB, April 5

WE think exiting its US e-commerce units, Jagged Peak and TradeGlobal, is positive for SingPost, as losses will no longer be a drag, prompting a higher earnings per share (EPS).

We raise our FY2020-2021 forecasted EPS by 4.9-17.9 per cent on the back of the removal of the e-commerce earnings drag, improved profitability of its logistics operations, and lower postal margins.

We now expect investors to be rewarded with a higher distribution per share in FY2021, still within its 60-80 per cent payout ratio and translating to a …