SGX

SGX: CS reiterates its Outperform rating on counter, with TP $9.00 (24.5% upside) pegged to 25x forward earnings (8-year average). House see some downside risk to consensus earnings and share price if equity volumes remain weak. The key investment case for SGX is longer-term growth through both existing market growth and success in its strategy to become an Asian regional gateway, with derivatives being the medium-term driver. Nearer term, its fortunes are more linked to current market volumes. Catalysts include higher trading volumes, IPOs and subsequent capital raisings and success of new product launches.