Navigating Singapore 2022 - CGS-CIMB Research 2021-12-03: Reopening Is Inevitable, Be Prepared To Position For A Bounce In Market

Navigating Singapore 2022 - Reopening Is Inevitable, Be Prepared To Position For A Bounce In Market

GENTING SINGAPORE LIMITED (SGX:G13) | SGinvestors.ioGENTING SINGAPORE LIMITED (SGX:G13) SINGAPORE AIRLINES LTD (SGX:C6L) SIA ENGINEERING CO LTD (SGX:S59) SATS LTD. (SGX:S58) COMFORTDELGRO CORPORATION LTD (SGX:C52)
  • The period ahead calls for selective stock-picking, in our view, rather than over-hyping the gloom. We want to play the bounce in market and also look for outperformers in a sell-down market.
  • Anchor themes:
    1. oversold reopening stocks;
    2. survivor of the fittest against inflation;
    3. earnings growth; and
    4. value picks.
  • Our base case 2022 calendar year-end FSSTI target now stands at 3,506 (-0.5 standard deviation of its 10-year mean), as emergence of more virus variants could throw spanners into the works.
  • Technical Outlook:
    • Near-term view (next 3 to 6 months) – Oversold, bottoming out soon.
    • Long-term view (next 12 months) – Uptrend intact.
  • 5 reopening stocks that may be oversold
    1. Genting Singapore (SGX:G13) (Target price: S$0.95):
    2. SIA Engineering (SGX:S59) (Target price: S$2.92).
    3. SIA (SGX:C6L) (Target price: S$5.86).
    4. ComfortDelGro (SGX:C52) (Target price: S$1.80).
    5. SATS (SGX:S58) (Target price: S$4.32)
  • We stay Overweight on sectors that post double-digit earnings growth, with room to buffer earnings miss, if any. Leading the growth trend is the Tech sector which we expect to see a three-year super-cycle with three-year average growth of 14% through to FY23F, led by strong demand orders. Telco is another sector that could emerge as an underdog in 2022, offering earnings swings of 24% (from 5% in 2021) and 19% through to 2023.



Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.



LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2021-12-03
SGX Stock Analyst Report ADD MAINTAIN ADD 0.950 SAME 0.950
ADD MAINTAIN ADD 5.860 SAME 5.860
ADD MAINTAIN ADD 2.920 SAME 2.920
HOLD MAINTAIN HOLD 4.320 SAME 4.320
ADD MAINTAIN ADD 1.800 SAME 1.800




Read also CGS-CIMB's most recent report:
2021-08-27 ComfortDelGro - Kia Ora, New Zealand!

Target prices by 2 other brokers at ComfortDelGro Target Prices.
Listing of broker reports at ComfortDelGro Analyst Report.

Relevant links:
ComfortDelGro Share Price History,
ComfortDelGro Announcements,
ComfortDelGro Dividends & Corp Actions,
ComfortDelGro News Articles





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