SIA: Goldman Sachs downgrades to Neutral from Buy & cuts target price to $14.20 from $16.10. Expects traffic growth to remain lacklustre as SIA continues to lose market share to low cost carriers which are winning business thanks to LCC's aggressive pricing strategies. Highlights SIA screens favorably on valuations & has historically traded at a 33% discount to its peers since 2001 but this discount will likely continue barring initiatives allowing SIA to gain access to high growth markets.
House sees better relative upside in other airlines, namely China Eastern Airlines (670 HK). Notes that the stock has declined 4.3% vs the STI's 6% rise in past 12 mths; attributing SIA's underperformance mainly to market share loss at its Singapore hub to LCCs.
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