Analysts have maintained their optimism that Sats continues to be on a recovery path and that dividend payments may be resumed.
For its 3QFY204 ended Dec 2023, the ground handler has reported a revenue of $1.37 billion, up 6.5% y-o-y.
Earnings in the same period was $31.5 million, a surge from $0.5 million reported in the year earlier quarter, and up 41.9% q-o-q.
This brings Sats' 9MFY2024 patmi to $23.7 million, versus a loss of $32 million recorded for 9MFY2023. The company attributes the positive numbers to better leverage.
"We see sustained profitability growth from its new commercial contracts driving business volumes and earnings from FY2025," says CGS International's Tay Wee Kuang, who has kept his "add" call and $3.44 target price.
Ada Lim of OCBC Investment Research, meanwhile, has trimmed her fair value from $3.20 to $3.09, even though she kept her "buy" call.
Her revised target price is pegged to 8.8x FY24/FY25E blended EBITDA.
"Momentum in financial and operating metrics has been positive in the past few quarters, and management will look to resume dividends once the business returns to profitability," states Lim in her Feb 29 note.
According to Lim, Sats' management is optimistic that it will continue to benefit from the ongoing recovery in both passenger and cargo this calendar year, and sthat Red Sea tensions may translate to volume growth in Europe and Asia this current quarter to March.
Sats closed at $2.66 on March 1, up 1.53%.
