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Hot stock: SIA falls 6.3% as analysts cut targets after weak results
SHARES of Singapore Airlines (SIA) fell 6.3 per cent or 68 Singapore cents to S$10.08 on Friday morning after the carrier reported an unexpected fourth-quarter loss.
About 2.3 million shares had changed hands at 11.31am.
SIA reported on Thursday evening that it incurred a net loss of S$138.3 million for the three months ended March 31, against a year-ago profit of S$224.7 million. Analysts had been expecting a profit of S$54.3 million, according to a Bloomberg poll.
The loss came as SIA took a S$132 million provision for subsidiary SIA Cargo relating to an anti-competition case in the European Union. SIA on Friday said it was re-integrating SIA Cargo as a division within the group.
Revenue was also flat for the quarter, at S$3.72 billion.
On Friday, OCBC Investment Research analyst Eugene Chua described the results as "disappointing". Mr Chua maintained his "hold" recommendation on the stock, but is reviewing his S$10.36 target price.
UOB Kay Hian also kept its "hold" call on the stock, but lowered its target price to S$10.10 from S$10.40.