Analysts are viewing SIA Engineering Company (SIAEC) favourably as the group gears up to tap for further maintenance, repair and overhaul (MRO) growth.

DBS Group Research (DBS) and OCBC Investment Research (OIR) have both kept their “buy” calls on the stock at a respective raised target price (TP) of $3.50 from $2.80 previously, and an increased fair value (FV) of $3.50 from $3.00 previously.

DBS’s Jason Sum sees that flag carrier Singapore Airlines(SIA), with its strategy to maintain a young, technologically advanced fleet of aircraft, provides SIAEC with maintenance opportunities aplenty with its renewed contract, given that around 70% to 80% of the group’s top line is driven by its parent company.