DBS analyst Jason Sum maintained a Buy rating on SATS yesterday and set a price target of S$3.80.
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Jason Sum 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 notable increase in core PATMI for the second quarter of FY26, driven by significant growth in cargo volume and effective price adjustments in both ground and cargo handling services. This growth contributed to an 8.4% rise in overall revenue, with the SATS Gateway segment showing particularly strong performance.
Furthermore, SATS’s operating margins have improved, reaching their highest level since the pandemic began, indicating efficient cost management and operational leverage. The company’s ability to consistently outpace market growth in cargo volumes, coupled with strategic customer acquisitions and network expansion, positions it well to navigate potential market volatility. Additionally, upcoming refinancing at lower interest rates and improved free cash flow are expected to further bolster earnings growth, supporting the Buy recommendation.
SPASF’s price has also changed moderately for the past six months – from S$2.970 to S$3.550, which is a 19.53% increase.