SingPost may have high growth potential, but the stock isn’t cheap

SINGAPORE (Feb 15): Joining the list of brokerages with a “hold” recommendation on Singapore Post (SingPost) is DBS, which is resuming coverage on the provider of mail, logistics and eCommerce solutions at a target price of $1.31.

(See also: Hold your horses on SingPost, advise brokerages)

In a Wednesday report, analyst Sachin Mittal notes that while SingPost deserves a premium due to its higher earnings CAGR of 12% over FY17-20F, this has already been priced in such that it is, in fact, overvalued by about 8% at its current price levels.

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