For an investor, when venturing into a new sector or market, analysts’ ratings and share price forecasts serve as two very important factors in making a decision. In today’s piece, we will discuss these aspects for two SGX-listed companies.
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Both Singapore Airlines (SG:C6L) and Trip.com (SG:K3RD) have benefited from the ongoing recovery in the global travel and hospitality sectors.
Singapore Airlines Share Price Forecast
Singapore Airlines is the national airline of Singapore, with operations in more than 30 countries around the world.
The company’s stock has recovered after its huge decline during the COVID-19 pandemic. In the last three years, the stock has gained 32%, driven by the global recovery in air travel.
C6L stock has a Hold rating on TipRanks, based on a total of five recommendations. Analysts have predicted an average price of S$5.9 for the next 12-month period, which is 3.3% higher than the current trading levels.
Two months ago, analyst Paul Yong from DBS re-rated the stock as Buy, predicting an upside of 19% in the share price. DBS also raised its price target from S$6.6 to S$6.8 on the stock. Yong stated that the positive recovery in the airlines’ operations and higher expected passengers from China would drive top-line growth for the airlines. China accounted for 15% of the airlines’ revenue prior to COVID.
Yong also expects the passenger volume recovery to push the company’s net profit by 11% in the fiscal year 2024 and by 8% in 2025.
Trip.com Stock Forecast
Trip.com is a travel company that provides a range of services like ticket booking, accommodations, tour packages, corporate travel, etc. Over the last year, the stock has soared, generating a return of more than 50% for its shareholders.
According to TipRanks, K3RD stock has a Strong Buy rating with all 12 Buy recommendations. Analysts are highly bullish on the stock price and predict growth of 34% in the year ahead. The average price target is $48.07.
20 days ago, analyst Thomas Chong from investment banking group Jefferies reiterated his Buy rating on the stock.
Conclusion
Both of the companies discussed above have seen tough times during COVID and have made their way out of it.
C6L has a Hold rating from analysts with minimal upside potential. While K3RD has a Strong Buy rating with more than 30% expected growth in its share price.
