Phillip Securities analyst Hashim Osman upgraded the rating on SATS to a Buy today, setting a price target of S$4.44.
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Hashim Osman has given his Buy rating due to a combination of factors, including stronger-than-expected earnings and resilient cargo demand. SATS’ latest quarter saw profit and revenue outpace earlier projections, supported by solid cargo volume growth in Europe and Asia that more than offset weakness in the Americas, with semiconductor and AI-related shipments continuing to be a key driver.
He also highlights that recently secured multi-year contracts with major airlines and cargo operators, together with sizable new leases and capex at key airports, should sustain volume growth and improve profitability as new facilities ramp up. With upward revisions to earnings forecasts, a higher DCF-based target price of S$4.44, and valuation that he views as reasonable relative to growth prospects, he concludes the shares offer attractive upside potential.
Osman covers the Industrials sector, focusing on stocks such as SATS, SIA Engineering Co, and SIA – Singapore Airlines. According to TipRanks, Osman has an average return of 0.8% and a 33.33% success rate on recommended stocks.
In another report released today, TipRanks – Google also upgraded the stock to a Buy with a S$4.00 price target.