SIA

SIA: DB raises earnings forecast over FYMar15-17 significantly over lower fuel prices. The forecast change also factors weaker SGD forecast, lower passenger yield, and updated cost/ associate forecasts. SIA's fuel benefits will not be as stark as peers as 65% of 2H FYMar15 fuel have been hedged. DB upgrades SIA to Hold from Sell, with TP increased to $11.30 from $8.80, stating that FY17e ROE of 7.3% is close to its cost of equity of 7%. Upside risk is large special dividend from $4.4b cash hoard.