STOCKS NEWS SINGAPORE-CIMB upgrades SATS to outperform
CIMB Research upgraded its rating on airline services company SATS Ltd to 'outperform' from 'neutral' and raised its target price to S$3.32 from S$2.82, citing a rise in air travel in Singapore.
SATS shares were up 0.7 percent at S$2.96 and have gained 2.4 percent since the start of the year, compared with the FTSE ST Industrials Index's 3 percent rise.
CIMB expects higher air traffic volume through Singapore. In November, Singapore's Changi Airport handled an average 920 flights per day, a record high. With the thriving air travel in Singapore, CIMB said SATS can offer stable earnings growth and yields of over 4 percent.
Meanwhile, CIMB said SATS' profit margins were expected to recover, helped by easing food inflation. The brokerage expects SATS's core net profit margin to improve 0.4 percentage points to 9.9 percent in 2013.
0947 (0147 GMT)
- Tweet this
- Share this
- Digg this
- Merkel asks Putin to explain reports of Russian troops in Ukraine
- Breakthrough hopes dented as Ukraine accuses Russia of new incursion |
- China urges Japan to break from aggressive past after Abe honours war criminals
- Islamic State executes soldiers, takes hostages at Syria base - social media
- Business leaders urge Scots to vote against independence