In a report released on May 26, Wee Kuang Tay from CGS-CIMB reiterated a Buy rating on SATS (SPASF – Research Report), with a price target of S$3.60.
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Wee Kuang Tay has given his Buy rating due to a combination of factors that suggest SATS is well-positioned for future growth. The company’s net profit for the fourth quarter of FY25 exceeded expectations, despite challenges such as lower contributions from associates and joint ventures and impairment costs. This resilience is attributed to SATS’s ability to gain market share, as evidenced by its cargo tonnage growth outpacing global demand since the third quarter of FY24.
Furthermore, SATS’s revenue has consistently grown throughout FY25, and the company has declared a higher-than-expected dividend payout. The management’s insights indicate that despite global trade tensions, SATS is likely to continue benefiting from supply chain adjustments and increased demand for certain types of shipments. These factors, along with the company’s strategic expansion and operational improvements, support the expectation of continued earnings growth in FY26 and beyond.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$3.50 price target.