SATS not for boarding at present

SINGAPORE (Sept 22): Daiwa Capital Markets is downgrading SATS to a “hold” rating with target price to $5.22 as the stock looks fairly valued after its recent strong performance.

Short-term headwinds such as the Zika outbreak could also dent tourist arrivals, with July tourist data from Singapore Tourism Board (STB) already signalling a less pronounced growth.

In a Wednesday note, Royston Tan says SATS’s strong rise in share price with due to a sharp expansion in its price-earnings multiple despite little change to its earnings forecasts.

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