SATS (SATS.SI): Reiterate Buy and Lift TP to $5.39, Above-Industry Cargo Growth Expected to Continue

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SATS (SATS.SI): Reiterate Buy and Lift TP to $5.39, Above-Industry Cargo Growth Expected to Continue

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22 Jul 2026 02:09:38 ET │ 18 pages

SATS (SATS.SI)

Reiterate Buy and Lift TP to S$5.39, Above-Industry Cargo Growth

Expected to Continue

CITI'S TAKE Buy

Price (21 Jul 26 17:06) S$4.69 SATS' share price has increased 39% since FY26 results beat on May 25th;

Target price S$5.39↑ it trades on 20x FY27E PER, in-line with 20x PER that anchors SATS'

S$10bn target market cap beyond FY29 (Page 2 of its FY24 Strategy from S$4.12

Update May 29th 2024). We continue to see further share-price upside Expected share price return 14.9%

potential and raise TP to S$5.39 (from S$4.12), which is still based on 20x Expected dividend yield 1.7%

PER as we roll over valuation to FY28E (from FY27E) and lift FY27-28E core Expected total return 16.6%

earnings estimates by 12-17%. Our earnings revisions are driven by a Market Cap S$7,012M

combination of 8-10% higher cargo volume and 5-8% higher ASP across

US$5,427M food solution and cargo services after incorporating a stronger outlook

across business segments. Our revised earnings sit 7% above consensus

across FY27-29. We see a combination of strong 4-5% global air-freight

volume growth and potential long-haul traffic shifts away from Middle Kaseedit ChoonnawatAC

East to APAC hubs including Singapore as likely share-price catalysts. +66-2-079-3606

kaseedit.choonnawat@citi.com

Sequential air-freight growth and potential upside from hub traffic shifts — We Eric Lau

forecast SATS' air-cargo volume growth at 7.5%/5.8%/5.8% YoY over FY27-29E +852-2501-2726

compared with the industry's c4% CAGR according to Boeing, where we continue to eric.h.lau@citi.com

see tech verticals as key volume drivers. SATS has been gaining global air-freight