SIA Engineering seems well poised to gain from robust maintenance, repair and overhaul demand, says OCBC Investment Research analyst Ada Lim in a note.

The aircraft services company has investments in capacity expansion and capability development, continued growth of its partnerships, and exposure to the up-and-coming India market, she writes.

However, the company faces manpower shortage and supply chain constraints which have led to upward pressure on costs, Lim says.

OCBC lowers the stock's fair value estimate to S$2.64 from S$2.76, while maintaining a buy rating. Shares are flat at S$2.39.