RHB cuts SGX target price to S$20.30 after softer-than-expected Q1
DBS also previously downgraded the stock to ‘hold’ on Oct 13 and cut its target price to S$20
RHB has reduced its target price for Singapore Exchange (SGX) to S$20.30 following softer-than-expected Q1 results, according to a report on Monday. The brokerage lowered its earnings forecasts for SGX over the next three financial years by 8.3%, 8.4%, and 8.5% for FY2027, FY2028, and FY2029, respectively. This reduction follows weaker trading momentum in the first quarter, which tracked 7.4% and 10.2% below RHB's expectations for securities and derivatives activity.
RHB now anticipates SGX's recurring net-profit growth to slow to 5% in FY2027, significantly lower than the previous 21.1% in FY2026 and 14.9% in FY2025. The downgrade from DBS Group Research on Oct 13 to "hold" from "buy" and lowering its 12-month target price to S$20 from S$26.40 also contributed to the adjustment.
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