SATS upgraded by OCBC on valuation grounds

SINGAPORE (Oct 2): OCBC Research is upgrading its call on SATS to “buy” from “hold” on valuation grounds, with an unchanged fair value of $5.05.

In a Monday report, lead analyst Eugene Chua says he believes the group’s recent share price weakness, after having fallen about 3% over the past two weeks, presents an opportunity for investors to accumulate with a decent FY18F yield of about 3.9 – especially after witnessing yet another month of strong traffic growth as reported by Changi Airport for Aug 17.

To recap, passenger throughput grew 7% in Aug while aircraft movements and air freight movements rising 4.9% and 10.7% respectively.

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