Update shared on 22 Nov 2025
Fair value Decreased 0.15%Singapore Exchange Price Target Raised Amid Upgraded Analyst Outlook
Analysts have modestly increased their price target for Singapore Exchange, raising it from S$16.45 to S$16.43. Slight improvements in equity market flows and revenue growth expectations support a more neutral outlook.
Analyst Commentary
Bullish Takeaways
- Bullish analysts point to ongoing efforts by Singapore Exchange to improve equity market flows, which are viewed as positive steps toward boosting trading revenues.
- The recent price target increase is supported by the expectation for gradual revenue growth, reflecting greater confidence in the company’s execution capabilities.
- Upgrading the stock from Underweight to Neutral signals a reduction in prior concerns. The current valuation is seen as more attractive given recent performance improvements.
- There is recognition that recent strategic initiatives, if sustained, could further enhance medium-term growth prospects for the exchange.
Bearish Takeaways
- Bearish analysts caution that the growth outlook remains moderate, and that revenue improvements may take time to materially impact the bottom line.
- There is still some concern regarding the sustainability of improved equity market flows, which could revert if market sentiment weakens.
- While execution has improved, uncertainties remain around competitive pressures and the ability to consistently deliver higher trading volumes.
What's in the News
- SGX Derivatives will launch Bitcoin and Ethereum perpetual futures on 24 November 2025, allowing institutional investors regulated access to major crypto assets through robust and exchange-cleared contracts. (Product-Related Announcements)
- SGX Indices introduces the CSI SGX Asia 100 Indices, expanding Asia-focused benchmarks to include the region's biggest companies and providing greater access to onshore China equities. (Product-Related Announcements)
- SGX Group announces the new "Iris-ST" trading engine, expected in late 2027, offering enhanced functionality and risk controls for member firms and seeking market feedback on related rule changes. (Product-Related Announcements)
- Singapore Exchange approves a final tax-exempt dividend of 10.5 cents per share for FY2025 with plans for quarterly increases of 0.25 cents from 2026 to 2028. (Dividend Increases)
- The Indonesia-Singapore Depository Receipt (DR) Linkage has launched, enabling Singapore investors easier access to Indonesian-listed securities and strengthening ASEAN capital market connectivity. (Product-Related Announcements)
Valuation Changes
- Fair Value Estimate, representing the consensus analyst price target, has edged down slightly from SGD 16.45 to SGD 16.43.
- Discount Rate has decreased modestly from 6.99 percent to 6.91 percent. This suggests a marginally lower required return assumption by analysts.
- Revenue Growth expectations have risen modestly, increasing from 5.46 percent to 5.51 percent on an annualized basis.
- Net Profit Margin estimate has declined a fraction, moving from 49.09 percent to 48.91 percent.
- Future Price-to-Earnings (P/E) ratio forecast has decreased slightly from 27.14x to 27.10x.
Disclaimer
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