0407 GMT - The outlook for Singapore's air passenger traffic remains bright, underpinned by strong consumer travel demand, easing inflation, and a positive macroeconomic backdrop, DBS Group Research analysts say in a note. Increasing aircraft utilization and aging fleet could boost maintenance activity, with more previous-generation aircraft expected to enter heavy check cycles, the analysts add. DBS prefers service providers over airlines, with Singapore Technologies Engineering and SATS as its top picks in Singapore's aviation sector. ST Engineering is favored for its robust growth profile, attractive valuation and potential upside from its defense business. DBS has buy ratings and target prices of S$5.40 and S$4.40 on ST Engineering and SATS, respectively. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
December 03, 2024 23:07 ET (04:07 GMT)
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