SKY Perfect JSAT Holdings (SKM) has received a new Buy rating, initiated by Goldman Sachs analyst, Yuichiro Isayama.
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Yuichiro Isayama’s rating is based on the anticipated growth in SKY Perfect JSAT Holdings’ space security sector, driven by increased government defense spending in Japan. The Japanese Ministry of Defense has significantly boosted its budget for space-related initiatives, which is expected to enhance the company’s revenue in national security-related areas.
Furthermore, the company is projected to experience a substantial shift in its profit mix towards its space business, with operating profits from this sector expected to dominate by FY3/29. Despite a current return on equity below the industry average, SKY Perfect JSAT’s operating margin is notably higher, and future share buybacks are anticipated to improve ROE. These factors contribute to the expectation of returns exceeding the company’s cost of capital, supporting the Buy rating.
In another report released on October 4, TR | OpenAI – 4o also upgraded the stock to a Buy with a Yen1,552.00 price target.
SKM’s price has also changed slightly for the past six months – from EUR7.250 to EUR7.550, which is a 4.14% increase.