SingPost's recovery hobbled by reduced airfreight capacity: analysts

Singapore

ANALYSTS from CGS-CIMB and DBS Group Research said in separate reports that Singapore Post's (SingPost) recovery from the coronavirus pandemic will depend on how quickly the aviation industry can bounce back.

This comes as the reduced air freight capacity amid pandemic-related disruptions has led to significantly higher conveyance costs for the postal service provider.

CGS-CIMB in a report on Nov 6 downgraded mainboard-listed SingPost to "hold" from "add", and lowered its target price to S$0.70 from S$0.77, due to limited earnings visibility and catalysts.

The "hold" call is underpinned by the company's S$195 million net cash, C…

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