Broker: CGS International
Date of Report: April 2, 2026
Excerpt from CGS International report.
Report Summary
- Sector View: Neutral on Singapore Transport sector. Key risk is persistently high oil prices due to the Iran war, with upside if oil prices drop sharply post-conflict.
- Actionable Calls & Target Prices:
- ComfortDelGro (CD SP): ADD, Target Price: S\$1.70 (last close: S\$1.46). Defensive profile with resilient demand. Limited fuel cost impact due to cost pass-through, hedging, and recent fare increases. Attractive dividend yield ~6%. Action: Buy/Accumulate.
- SATS Ltd (SATS SP): ADD, Target Price: S\$4.53 (last close: S\$3.60). Impact from aviation disruptions expected to last 1-2 quarters, but trade re-routing likely to offset later. Action: Buy/Accumulate.
- Singapore Airlines (SIA SP): HOLD, Target Price: S\$6.77 (last close: S\$6.66). FY3/27F core net profit forecast cut by 30% due to inability to fully pass on higher jet fuel costs. High hedge cover softens the blow. Significant earnings rebound expected in FY28F if oil prices normalize. Action: Hold.
- Grab Holdings (GRAB US): ADD, Target Price: US\$6.25 (last close: US\$3.66). Limited near-term impact due to fare pass-through, but price-sensitive demand is a risk if fuel prices remain high. Action: Buy/Accumulate.
- Most Important Ideas:
- Rising fuel prices from the Iran war pose earnings pressure across the sector, hitting airlines hardest, while land transport and aviation services are more resilient due to hedging and cost pass-through.
- Sector picks: SATS, Grab, and ComfortDelGro for their relative resilience and/or recovery potential.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
