SIA

SIA: Morgan Stanley rates at Overweight with TP $18.80. Notes potential dividend surprise, with cash building up to $7-9bn in the next 2 years, allowing the carrier to pay an annual DPS of $1 for the next 2 years. Likes SIA for its defensive qualities – a high quality brand franchise and well-capitalized balance sheet. Notes EV/Ebitda of 5x, FY11E P/B of 1.6x, means SIA is trading at compelling mid-cycle valuation.