Wee Kuang Tay, an analyst from CGS-CIMB, reiterated the Buy rating on SATS. The associated price target was raised to S$4.05.
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Wee Kuang Tay has given his Buy rating due to a combination of factors that highlight SATS’s strong performance and growth potential. The company’s cargo handling business has been a significant driver of revenue and profit growth, outperforming global air cargo demand. This robust performance is supported by new contract wins and organic growth, which have contributed to an increase in cargo tonnage handled.
Furthermore, SATS’s gateway services have shown impressive revenue growth, and the company is expected to continue this positive trajectory. Despite some challenges, such as softer US demand, SATS’s financial outlook remains promising, with expectations of continued PATMI growth. The analyst also notes the potential for further growth from SATS’s food solutions business, particularly as new central kitchens in China and India ramp up. These factors, combined with a raised target price, underpin the Buy rating.
According to TipRanks, Kuang Tay is a 3-star analyst with an average return of 3.6% and a 51.43% success rate.
In another report released on November 13, DBS also maintained a Buy rating on the stock with a S$3.80 price target.