Deutsche Bank downgrades Singapore Exchange (S68.SG) to Hold vs Buy, cuts target to $8.55 vs $10.50; says uncertainties over ASX deal suggest stock may de-rate further.
“The rational for the proposed ASX merger is not compelling given integration risks, financial leverage and the absence of clear revenue upside potential.” House wary over potential changes to Australian competitive framework, with only $39 million target cost synergies, no obvious revenue synergies “the rationale for putting these two businesses together is not immediately apparent.”
