SIA

SIA/Airlines: UBS has sector report. House expect earnings to rise 21% in 2013 to support sector outperformance. Forecast 9.3% passenger traffic growth YoY & a stable fuel price in 2013. LikeCathay Pacific, SIA (Buy from Neutral, TP $12.6) as structuralissues are reflected in its low valuation, Air China on booming outbound travelmarket, and Tiger Airways on its best turnaround potential. House downgrade EVAAir (Sell from Neutral, TP NT$17) on rising threat from LCCs and rich valuation.