“Most of the known negatives are already priced in but potential positives have yet to be," UOB says.
UOB also notes SIA trades at low valuations and the carrier may add passengers from China if the country escalates its dispute with South Korea.
Cargo business is also looking up and SIA will benefit, UOB adds, predicting its shares will rise closer to its target of $10.40.
Shares of SIA are up 2 cents at $9.95.
