SGX

SGX: Goldman Sachs upgrades to Buy from Neutral and raises TP to $10.37 vs $8.22, based on 25x 2011 EPS vs 22x previously. Raises 2011-2012 EPS estimates by 11%-10%. Note that recent increase in Singapore market's average daily turnover sustainable, driven by more buoyant macro environment, increased market confidence, velocity & IPOs in SG…

Add that investors too negative on proposed merger with ASX and expect combined entity to yield rev synergies, backed by ample scope for cross-platform migration of derivatives products. Highlight that if deal not approved, relief rally may result, particularly for investors that were more skeptical on synergies and concerned about dilution to SGX's underlying growth rates.