0540 GMT - Singapore Exchange faces pressure on earnings as moderating growth in derivatives and securities fails to justify the stock's premium valuation, Macquarie Equity Research analyst Jayden Vantarakis says in a note. Derivatives growth is normalizing from a high three-year base, the analyst says. Meanwhile, securities average daily value needs to rise to 2.9 billion Singapore dollars-S$3.5 billion to justify where the stock is trading, compared with the S$2.0 billion-S$2.2 billion range currently. Macquarie trims its 2027-2029 EPS estimates by 2% and downgrades the stock to underperform from neutral, citing a 30% premium to Hong Kong Exchanges & Clearing. It also cuts its target price by 22% to S$20.30. Shares are down 4.1% at S$23.30.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.