SATS’s Strong Financial Performance and Strategic Positioning Justify Buy Rating

Phillip Securities analyst Paul Chew maintained a Buy rating on SATS (SPASF – Research Report) on May 26 and set a price target of S$3.58.

Paul Chew has given his Buy rating due to a combination of factors that highlight SATS’s strong financial performance and strategic positioning. The company reported a significant increase in FY25 PATMI, driven by robust growth in air cargo volume and aviation meals. This broad-based performance contributed to a positive free cash flow and an improved PATMI margin, indicating strong operational efficiency.
Despite some uncertainties in the air cargo segment due to changes in e-commerce dynamics between China and the US, SATS is well-positioned to capitalize on emerging opportunities in other regions such as Europe and the Middle East. The company’s ability to maintain resilient margins by passing on cost pressures to customers and achieving synergies from its merger with WFS further supports the positive outlook. Consequently, Paul Chew reiterates a Buy rating with a slightly adjusted target price, reflecting SATS’s potential for continued growth and profitability.

According to TipRanks, Chew is ranked #499 out of 9536 analysts.

In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$3.50 price target.